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Internal embeddedness, geographic distance, and global knowledge sourcing by overseas subsidiaries

Author

Listed:
  • Kazuhiro Asakawa

    (Keio University)

  • YeonJin Park

    (Electronics and Telecommunications Research Institute)

  • Jaeyong Song

    (Seoul National University)

  • Sang-Ji Kim

    (Samsung Economic Research Institute)

Abstract

We investigate determinants of global knowledge sourcing of overseas R&D subsidiaries, shedding light on vertical cross-border embeddedness within firms. Drawing on the paradox of embeddedness perspective, which assumes that embeddedness may facilitate or hinder knowledge transfer, we examine the extent to which different types of internal vertical embeddedness – administrative versus knowledge – facilitate global knowledge sourcing. We find that vertical administrative embeddedness inhibits global knowledge sourcing, while vertical knowledge embeddedness promotes it. We also find differing moderating effects of geographic distance between headquarters and its subsidiaries on the association between vertical embeddedness and global knowledge sourcing.

Suggested Citation

  • Kazuhiro Asakawa & YeonJin Park & Jaeyong Song & Sang-Ji Kim, 2018. "Internal embeddedness, geographic distance, and global knowledge sourcing by overseas subsidiaries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(6), pages 743-752, August.
    • Handle: RePEc:pal:jintbs:v:49:y:2018:i:6:d:10.1057_s41267-017-0112-x
    DOI: 10.1057/s41267-017-0112-x
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