On Incentives for an Efficient Flow of Knowledge within Multinationals

Amir Shoham, Varda Lewinstein Yaari and David M. Brock
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Amir Shoham: Department of Business Administration, Ben-Gurion University, Israel and Negev Academic College of Engineering, Israel
Varda Lewinstein Yaari: Department of Business Administration, Ben-Gurion University, Israel
David M. Brock: Department of Business Administration, Ben-Gurion University, Israel

International Journal of Business and Economics, 2003, vol. 2, issue 3, 213-226

Abstract: In this paper we develop a principal-agent, game-theoretic model of an MNC, intended to add to the understanding of how smart choices between incentives, monitoring, and structures are linked to an effective intra-firm flow of knowledge. We find that the equilibrium depends on the efficiency of substituting incentives for monitoring. Our study sheds light on arguments within the international management field about monitoring, incentives for managers, and managing knowledge transfer between subsidiaries.

Keywords: multinational; incentives; monitoring (search for similar items in EconPapers)
JEL-codes: F23 M10 M20 (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (3)

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