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Linkage between geographic space and knowledge transfer by multinational enterprises: a structural equation approach

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  • Sajjad Jasimuddin
  • Jun Li
  • Nicholas Perdikis

Abstract

This paper discusses the current links between international business, economic geography and knowledge management. Despite the recent proliferation of papers dealing with knowledge transfer by multinational enterprises (MNEs) in China, there is limited work investigating the role of geographic space on knowledge transfer. Given the growing interest in knowledge transfer by MNEs, the lack of research on geographic space in the Chinese context is a significant gap in our knowledge. In response, we have conducted what we believe to be the first study on the relationship between geographic space and knowledge transfer by the Japanese MNEs to their subsidiaries in China. The paper reviews the relevant literature from which it develops a theoretical model which is then tested empirically. We then provide empirical results on the relationship between geographic space, perceived distance and knowledge transfer. A LISREL model is employed to study the impact of the latent variables associated with geographic space on knowledge transfer. Based on the results, this study provides useful insights for economic geographers who wish to study knowledge transfer between parent companies and their subsidiaries across geographic space. Copyright Springer-Verlag Berlin Heidelberg 2015

Suggested Citation

  • Sajjad Jasimuddin & Jun Li & Nicholas Perdikis, 2015. "Linkage between geographic space and knowledge transfer by multinational enterprises: a structural equation approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(3), pages 769-795, May.
    • Handle: RePEc:spr:anresc:v:54:y:2015:i:3:p:769-795
    DOI: 10.1007/s00168-015-0684-y
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    More about this item

    Keywords

    F23; L21; L24;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures

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