Determinants of cross-national knowledge transfer and its effect on firm innovation

Masaaki Kotabe, Denise Dunlap-Hinkler, Ronaldo Parente and Harsh A Mishra
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Masaaki Kotabe: The Fox School of Business and Management, Temple University, Philadelphia, PA, USA
Denise Dunlap-Hinkler: Widener University, Chester, PA, USA
Ronaldo Parente: School of Business, Rutgers University, Camden, NJ, USA
Harsh A Mishra: School of Business, State University of New York, New Paltz, NY, USA

Journal of International Business Studies, 2007, vol. 38, issue 2, 259-282

Abstract: This study examines the determinants of international knowledge flow. From a resource-based perspective, it evaluates the impact of cross-national knowledge transfer on firm innovative performance. Based on 56,027 US patents owned by 53 selected firms in the US-based pharmaceutical industry, the results suggest that innovative performance is a curvilinear function of the international knowledge content used by a firm to innovate. As hypothesized, it was found that at (1) low and moderate levels of international knowledge content, a firm's strategy to transfer international knowledge improves its innovative performance, and at (2) higher levels of international knowledge content, there are diminishing marginal returns to transferring knowledge from overseas. Journal of International Business Studies (2007) 38, 259–282. doi:10.1057/palgrave.jibs.8400261

Date: 2007
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