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The Effect of Quantity, Quality and Timing of Headquarters-initiated Knowledge Flows on Subsidiary Performance

Author

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  • Yen Tran

    (Heriot-Watt University
    Copenhagen Business School)

  • Volker Mahnke

    (Copenhagen Business School)

  • Björn Ambos

    (Vienna University of Economics and Business)

Abstract

This paper develops and tests a model that explains how the quality, quantity and timing of knowledge flows from headquarters influence subsidiary performance. It extends recent research on vertical knowledge flows between global headquarters and international subsidiaries. We find a positive quality/performance relationship and a curvilinear quantity/performance relationship, indicating that too much knowledge sharing can be detrimental to the receiving subsidiary. Most importantly, we show that the timing of a knowledge flow significantly affects subsidiary sales performance.

Suggested Citation

  • Yen Tran & Volker Mahnke & Björn Ambos, 2010. "The Effect of Quantity, Quality and Timing of Headquarters-initiated Knowledge Flows on Subsidiary Performance," Management International Review, Springer, vol. 50(4), pages 493-511, August.
    • Handle: RePEc:spr:manint:v:50:y:2010:i:4:d:10.1007_s11575-010-0046-z
    DOI: 10.1007/s11575-010-0046-z
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    References listed on IDEAS

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    3. Galli Geleilate, Jose-Mauricio & Andrews, Daniel S. & Fainshmidt, Stav, 2020. "Subsidiary autonomy and subsidiary performance: A meta-analysis," Journal of World Business, Elsevier, vol. 55(4).
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    7. Lazarova, Mila & Peretz, Hilla & Fried, Yitzhak, 2017. "Locals know best? Subsidiary HR autonomy and subsidiary performance," Journal of World Business, Elsevier, vol. 52(1), pages 83-96.
    8. Leanne Chung, 2014. "Headquarters’ Managerial Intentionality and Reverse Transfer of Practices," Management International Review, Springer, vol. 54(2), pages 225-252, April.
    9. Li, Jingxun & Lee, Ruby P., 2015. "Can knowledge transfer within MNCs hurt subsidiary performance? The role of subsidiary entrepreneurial culture and capabilities," Journal of World Business, Elsevier, vol. 50(4), pages 663-673.
    10. Jiang Xu & Huihui Wu & Jianhua Zhang, 2022. "Innovation Research on Symbiotic Relationship of Organization’s Tacit Knowledge Transfer Network," Sustainability, MDPI, vol. 14(5), pages 1-22, March.
    11. Dellestrand, Henrik & Holm, Ulf & Lindahl, Olof, 2023. "Moving beyond the transfer dyad: Exploring network influences on transfer effectiveness," International Business Review, Elsevier, vol. 32(2).
    12. Ma, Danni & Fee, Anthony & Grabowski, Simone & Scerri, Moira, 2022. "Dual Organizational Identification in Multinational Enterprises and Interpersonal Horizontal Knowledge Sharing: A Conceptual Model," Journal of International Management, Elsevier, vol. 28(1).
    13. Cher-Hung Tseng, 2015. "Determinants of MNC’s Knowledge Inflows to Subsidiaries: A Perspective on Internalization Advantages," Management International Review, Springer, vol. 55(1), pages 119-150, February.
    14. Björn Ambos & Volker Mahnke, 2010. "How Do MNC Headquarters Add Value?," Management International Review, Springer, vol. 50(4), pages 403-412, August.
    15. Najafi-Tavani, Zhaleh & Robson, Matthew J. & Zaefarian, Ghasem & Andersson, Ulf & Yu, Chong, 2018. "Building subsidiary local responsiveness: (When) does the directionality of intrafirm knowledge transfers matter?," Journal of World Business, Elsevier, vol. 53(4), pages 475-492.
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    17. Heejin Kim & B. Sebastian Reiche & Anne-Wil Harzing, 2022. "How does successive inpatriation contribute to subsidiary capability building and subsidiary evolution? An organizational knowledge creation perspective," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(7), pages 1394-1419, September.
    18. Zhang, Feng & Jiang, Guohua & Cantwell, John A., 2019. "Geographically Dispersed Technological Capability Building and MNC Innovative Performance: The Role of Intra-firm Flows of Newly Absorbed Knowledge," Journal of International Management, Elsevier, vol. 25(3), pages 1-1.
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