Managing conflict of interests between headquarters and their subsidiaries regarding technology transfer to emerging markets--a framework

Lutz Kaufmann and Soenke Roessing

Journal of World Business, 2005, vol. 40, issue 3, 235-253

Abstract: This paper studies intra-organizational conflict between headquarters and its foreign subsidiary regarding technology transfer to emerging markets with a lack of protection of intellectual property rights. The purpose is to: (i) develop an understanding when conflict exists; (ii) suggest how the conflict can be structured; and (iii) present conflict design alternatives that maximize the multinational corporations' interest over the interest of the subsidiary. This article proposes that subsidiary self-interest in technology transfer situations may only be detrimental to the overall success of the MNC if products are easy to copy, the host environment has the technological and managerial capabilities to expropriate and the technology represents a competitive advantage. In situations where it is likely that the technology transfer is vulnerable to expropriation headquarters is advised to establish an independent pool of information of expropriation risks, to build trust by starting with small scale technology transfer and to signal career perspectives to subsidiary managers. As a result, the creation of a cooperative climate reduces subsidiary opportunism and information asymmetries.

Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1090951605000301
Full text for ScienceDirect subscribers only

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:eee:worbus:v:40:y:2005:i:3:p:235-253

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/620401/bibliographic
http://www.elsevier. ... 620401/bibliographic

Access Statistics for this article

Journal of World Business is currently edited by David Collings and Jonathan Doh

More articles in Journal of World Business from Elsevier
Bibliographic data for series maintained by Catherine Liu ().