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Knowledge-intensive business services: does dual embeddedness matter?

Author

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  • Zhaleh Najafi-Tavani
  • Axèle Giroud
  • Rudolf R. Sinkovics

Abstract

Building on network theory, this study investigates knowledge development in subsidiaries in the knowledge-intensive business service (KIBS) sector. Foreign subsidiaries’ internal and external networks are divided into three main categories: relations with (1) the local environment (external embeddedness), (2) parent firms (subsidiary--parent firm embeddedness and autonomy), and (3) sister subsidiaries (subsidiary--subsidiary embeddedness). Hypotheses are tested using a sample of 184 subsidiaries, located in the UK, whose parent firms are based outside the UK. While our results indicate that external embeddedness, subsidiary--parent embeddedness, and autonomy are main determinants of knowledge development within KIBS multinational companies, they show no association between subsidiary--subsidiary embeddedness and knowledge development.

Suggested Citation

  • Zhaleh Najafi-Tavani & Axèle Giroud & Rudolf R. Sinkovics, 2011. "Knowledge-intensive business services: does dual embeddedness matter?," The Service Industries Journal, Taylor & Francis Journals, vol. 32(10), pages 1691-1705, November.
    • Handle: RePEc:taf:servic:v:32:y:2011:i:10:p:1691-1705
    DOI: 10.1080/02642069.2012.665895
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    1. Najafi-Tavani, Zhaleh & Giroud, Axèle & Andersson, Ulf, 2014. "The interplay of networking activities and internal knowledge actions for subsidiary influence within MNCs," Journal of World Business, Elsevier, vol. 49(1), pages 122-131.

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