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Internal embeddedness, geographic distance, and global knowledge sourcing by overseas subsidiaries

Kazuhiro Asakawa (), YeonJin Park (), Jaeyong Song and Sang-Ji Kim
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Kazuhiro Asakawa: Keio University
YeonJin Park: Electronics and Telecommunications Research Institute
Jaeyong Song: Seoul National University
Sang-Ji Kim: Samsung Economic Research Institute

Journal of International Business Studies, 2018, vol. 49, issue 6, 743-752

Abstract: Abstract We investigate determinants of global knowledge sourcing of overseas R&D subsidiaries, shedding light on vertical cross-border embeddedness within firms. Drawing on the paradox of embeddedness perspective, which assumes that embeddedness may facilitate or hinder knowledge transfer, we examine the extent to which different types of internal vertical embeddedness – administrative versus knowledge – facilitate global knowledge sourcing. We find that vertical administrative embeddedness inhibits global knowledge sourcing, while vertical knowledge embeddedness promotes it. We also find differing moderating effects of geographic distance between headquarters and its subsidiaries on the association between vertical embeddedness and global knowledge sourcing.

Keywords: global knowledge sourcing; internal vertical embeddedness; geographic distance; overseas R&D subsidiaries (search for similar items in EconPapers)
Date: 2018
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