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Tapping the power of local knowledge: A local-global interactive perspective

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  • Li, Shenxue
  • Easterby-Smith, Mark
  • Lyles, Marjorie A.
  • Clark, Timothy

Abstract

Existing theories of international business and strategy do not fully explain how local knowledge disadvantage faced by foreign investors can be mitigated. We conducted an in-depth qualitative study into four MNCs to investigate the micro-processes of how they generated value from their dispersed sources of local knowledge in China. The results suggest an interactive model: that MNCs employed management processes encompassing three strategically interconnected efforts—global knowledge penetration, local-global knowledge blending, and local-global knowledge integration. The model highlights the interplay between global and local knowledge and challenges extant research that solely focuses on the transfer of either home-based or local knowledge.

Suggested Citation

  • Li, Shenxue & Easterby-Smith, Mark & Lyles, Marjorie A. & Clark, Timothy, 2016. "Tapping the power of local knowledge: A local-global interactive perspective," Journal of World Business, Elsevier, vol. 51(4), pages 641-653.
    • Handle: RePEc:eee:worbus:v:51:y:2016:i:4:p:641-653
    DOI: 10.1016/j.jwb.2016.04.001
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