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MNC subunit competence creation and knowledge sourcing

Author

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  • Xiaoyu Pu
  • John Cantwell
  • Huiping LI

Abstract

This paper proposes a model to measure the extent to which the knowledge sourcing of a multinational corporation (MNC) foreign subunit influences that subunit's likelihood to engage in competence creation (CC) activities. We examine on a technological field level the extent to which a subunit's activity is distinct from that of its parent company (defined as technological distinctiveness), then analyse how this technological distinctiveness is related to the knowledge sourcing patterns of the subunit, as measured by the MNC's knowledge structure, as well as the knowledge complexity and geographical dispersion of its knowledge sources. This study focuses on a broadly defined set of large firms in the chemical industry. As predicted, a positive relationship is found between the knowledge complexity of a subunit's knowledge sourcing and its technological distinctiveness. Less expected, there is also found a negative relationship between the geographical dispersion of a subunit's knowledge sources and its technological distinctiveness.

Suggested Citation

  • Xiaoyu Pu & John Cantwell & Huiping LI, 2025. "MNC subunit competence creation and knowledge sourcing," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 16(1), pages 26-49.
    • Handle: RePEc:ids:ijtlid:v:16:y:2025:i:1:p:26-49
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