Subsidiary roles as determinants of subsidiary technology sourcing: empirical evidence from China

Zhang, Si, Zhao, Shasha ORCID: https://orcid.org/0000-0001-8993-4915, Bournakis, Ioannis ORCID: https://orcid.org/0000-0002-7065-9316, Pearce, Robert and Papanastassiou, Marina (2018) Subsidiary roles as determinants of subsidiary technology sourcing: empirical evidence from China. Economia Politica, 35 (2) . pp. 623-648. ISSN 1120-2890 [Article] (doi:10.1007/s40888-018-0120-8)

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Abstract

Emerging economies have become new destinations for knowledge sourcing, forcing Multinational Enterprises (MNEs) to reconfigure their global innovation strategies and structure. While foreign subsidiaries located in emerging economies were conventionally viewed as having market or efficiency seeking roles, they have started to evolve towards knowledge-seeking roles. We argue that the conventional wisdom shall be reassessed considering this recent shift. We empirically investigate 129 manufacturing MNE subsidiaries of Fortune 500 companies in China, in terms of their roles and sources of technology. Our results indicate that market and knowledge seeking subsidiaries located in China tend to have a positive impact on the generation of new knowledge, either through locally established MNE R&D laboratories or through collaborations with local firms and scientific institutions.

Item Type: Article
Research Areas: A. > Business School > International Management and Innovation
Item ID: 24710
Notes on copyright: This is a post-peer-review, pre-copyedit version of an article published in Economia Politica. The final authenticated version is available online at: https://doi.org/10.1007/s40888-018-0120-8
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Depositing User: Shasha Zhao
Date Deposited: 27 Jul 2018 11:30
Last Modified: 04 Feb 2021 18:58
URI: https://eprints.mdx.ac.uk/id/eprint/24710

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