Embeddedness of innovation receivers in the multinational corporation: Effects on business performance

Christina Hallin, Ulf Holm and Dharma Deo Sharma

International Business Review, 2011, vol. 20, issue 3, 362-373

Abstract: This paper investigates how relationship embeddedness in MNC subsidiaries' corporate and external networks influences the contribution of innovation transfer to the recipient subsidiary's business performance. OLS regressions using data on the intra-MNC transfer of 224 innovations indicate that the embeddedness of a subsidiary's relationships in the corporate and external network positively affects the received innovation's contribution to business performance. More detailed analysis demonstrates that the positive link between a subsidiary's embeddedness in the external network and the contribution to business performance of receiving an innovation is negatively affected when the innovation is unique compared with other innovations on the market.

Keywords: Business; performance; Corporate; relationships; Embeddedness; External; network; relationships; Innovation; transfer; Innovation; uniqueness; Recipient; subsidiary (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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