The Multinational Corporation and the Global Sourcing of Knowledge: Remodeling Absorptive Capacity

16 Pages Posted: 6 Dec 2007

See all articles by Constantina Kottaridi

Constantina Kottaridi

University of Piraeus

Marina Papanastassiou

Copenhagen Business School

Christos N. Pitelis

Head of International Business Department

Dimitrios D. Thomakos

University of Athens, Department of Business Administration

Date Written: December 2007

Abstract

We build on extant theory of the MNC, MNC subsidiaries, absorptive capacity and Penrose's concept of 'productive opportunity' to develop a framework on the MNC and absorptive capacity (AC) that allows us to explore the role of subsidiaries in the global sourcing of knowledge. We develop and test hypotheses using primary questionnaire-collected data. Our results support the idea that subsidiaries' realized AC can be improved by the realized and potential AC of the MNC group and the subsidiary and in turn may improve the performance of the subsidiaries and the group as a whole.

Keywords: Multinational Corporation, absorptive capacity, subsidiaries, knowledge

JEL Classification: M21, O32

Suggested Citation

Kottaridi, Constantina and Papanastassiou, Marina and Pitelis, Christos N. and Thomakos, Dimitrios D., The Multinational Corporation and the Global Sourcing of Knowledge: Remodeling Absorptive Capacity (December 2007). Available at SSRN: https://ssrn.com/abstract=1053481 or http://dx.doi.org/10.2139/ssrn.1053481

Constantina Kottaridi (Contact Author)

University of Piraeus ( email )

Piraeus, 18534
Greece

Marina Papanastassiou

Copenhagen Business School ( email )

Solbjerg Plads 3
Frederiksberg C, DK - 2000
Denmark

Christos N. Pitelis

Head of International Business Department ( email )

Leeds, LS2 9JT
United Kingdom

Dimitrios D. Thomakos

University of Athens, Department of Business Administration ( email )

Athens
Greece

HOME PAGE: http://ba.uoa.gr/

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