Headquarters Resource Allocation for Inter-Subsidiary Innovation Transfer: The Effect of Within-Country and Cross-Country Cultural Differences

Yuzhe Miao, Yuping Zeng and Jeoung Yul Lee ()
Additional contact information
Yuzhe Miao: Sungkyunkwan University
Yuping Zeng: Southern Illinois University Edwardsville
Jeoung Yul Lee: Hongik University

Management International Review, 2016, vol. 56, issue 5, No 3, 665-698

Abstract: Abstract Although the importance of cross-country cultural distance is widely acknowledged in the international business literature, we have limited understanding about how culture distance at different levels influences multinational corporations’ (MNCs’) subsidiary management. This paper contributes to culture-related research by stressing cultural differences at the sub-national level by examining how cultural distances at both the within- and cross-country levels simultaneously influence headquarters resource allocations for innovation transfer projects between subsidiaries. We find that the within-country cultural distance between subsidiaries is positively related to headquarters resource allocation for innovation transfer projects based on 1439 dyadic innovation transfer projects between Korean MNC subsidiaries located in China, and this relationship is strengthened when the cross-country cultural distance between headquarters and the sending subsidiary increases.

Keywords: Cultural distance; Sub-national culture; Innovation transfer; Headquarters resource allocation (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://link.springer.com/10.1007/s11575-015-0266-3 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:manint:v:56:y:2016:i:5:d:10.1007_s11575-015-0266-3

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/11575

DOI: 10.1007/s11575-015-0266-3

Access Statistics for this article

Management International Review is currently edited by Michael-Jörg Oesterle and Joachim Wolf

More articles in Management International Review from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().