The Multinational Corporation and the Global Sourcing of Knowledge: Remodeling Absorptive Capacity
16 Pages Posted: 6 Dec 2007
Date Written: December 2007
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: Suggested Citation