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The paradox of technological capabilities: a study of knowledge sourcing from host countries of overseas R&D operations

Jaeyong Song and Jongtae Shin
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Jaeyong Song: Graduate School of Business, Seoul National University, Seoul, Korea
Jongtae Shin: College of Management, Long Island University, Greenvale, USA

Journal of International Business Studies, 2008, vol. 39, issue 2, 303 pages

Abstract: We investigate the factors that influence the extent to which a multinational corporation's headquarters (MNC-HQ) sources knowledge from the host countries of its R&D labs. We propose that the technological capabilities held by MNC-HQs present a paradox. On the one hand, they enhance MNC-HQs' learning capabilities. On the other hand, they reduce MNC-HQs' motivations to outsource knowledge from host countries. We also argue that it is important to consider both relative and absolute levels of technological capabilities, because relative levels can influence MNC-HQs' motivations to source knowledge from host countries. Statistical findings generally support our arguments. Journal of International Business Studies (2008) 39, 291–303. doi:10.1057/palgrave.jibs.8400348

Date: 2008
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