Global Outward Foreign Direct Investment Network: Perspectives for Knowledge Transfer from Host Countries to Home Countries by MNEs

Nasrin Sultana () and Ekaterina Turkina
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Nasrin Sultana: Department of International Business, HEC Montreal, Montreal, QC H3T 2A7, Canada
Ekaterina Turkina: Department of Entrepreneurship and Innovation, HEC Montreal, Montreal, QC H3T 2A7, Canada

Administrative Sciences, 2023, vol. 13, issue 12, 1-23

Abstract: The possession of diverse knowledge is vital for countries to maintain competitive advantages as new technologies and other disruptive changes emerge. Foreign Direct Investment (FDI) has become an important instrument to access knowledge and innovation available in other countries with the increasing trend of globalization. However, little is known about how the knowledge base of a country can be enriched in the context of knowledge sourcing through FDI, drawing upon general contexts of knowledge and innovation in countries. By adopting the social network analysis methodology to model and analyze the global outward FDI network for the period 2009–2016 and conducting longitudinal regression analyses, this study reveals that the global outward FDI network has a core–periphery structure, the network centrality position of a country is positively and significantly associated with the knowledge base of the country, and the absorptive capacity of a country positively moderates the association. Equipped with empirical evidence to support our theory, we develop the K-NACK framework to understand the context of knowledge sourcing through FDI. This empirical research article offering novel analysis and a theoretical and conceptual framework will be useful for policymakers at firms and in individual countries to find advanced as well as complementary knowledge from host countries to improve the knowledge base in home countries.

Keywords: outward FDI; knowledge sourcing; knowledge base; network analysis (search for similar items in EconPapers)
JEL-codes: L M M0 M1 M10 M11 M12 M14 M15 M16 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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