Does Knowledge Sharing Pay? An MNC Subsidiary Perspective on Knowledge Outflows

SMG Working Paper No. 3/2006

41 Pages Posted: 23 Apr 2007

See all articles by Volker Mahnke

Volker Mahnke

Copenhagen Business School - Department of International Economics & Management

Torben Pedersen

Copenhagen Business School - Department of Strategic Management and Globalization

Markus Venzin

Bocconi University - Department of Management and Technology

Date Written: January 2006

Abstract

This empirical paper explores knowledge outflow from MNC subsidiaries and its impact on the MNC performance. We develop and test hypotheses derived from literature on MNC knowledge flows integrated with the perspective of knowledge-creating, self-interested MNC subsidiaries. The hypotheses are developed using a simultaneous equation model applied to a unique dataset encompassing a German MNC, HeidelbergCement. Enablers and impediments of knowledge outflows are assessed in order to explain why subsidiaries share their knowledge with other MNC units. Implications are examined by studying the link between knowledge outflows and subsidiary performance. Our findings suggest that knowledge outflows increase a subsidiary's performance only up to a certain point and that too much knowledge sharing may be detrimental to the contributing subsidiary's performance.

Suggested Citation

Mahnke, Volker and Pedersen, Torben and Venzin, Markus, Does Knowledge Sharing Pay? An MNC Subsidiary Perspective on Knowledge Outflows (January 2006). SMG Working Paper No. 3/2006, Available at SSRN: https://ssrn.com/abstract=982097 or http://dx.doi.org/10.2139/ssrn.982097

Volker Mahnke

Copenhagen Business School - Department of International Economics & Management ( email )

Frederiksberg, 2000
Denmark

Torben Pedersen (Contact Author)

Copenhagen Business School - Department of Strategic Management and Globalization ( email )

Porcelænshaven 24
Frederiksberg, 2000
Denmark
+45 3815 3030 (Phone)
+45 3815 3035 (Fax)

HOME PAGE: http://www.cbs.dk/staff/tp

Markus Venzin

Bocconi University - Department of Management and Technology ( email )

Via Roentgen 1
Milan, MI 20136
Italy

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