Knowledge-intensive business services: does dual embeddedness matter?

Zhaleh Najafi-Tavani, Axèle Giroud and Rudolf Sinkovics ()

The Service Industries Journal, 2011, vol. 32, issue 10, 1691-1705

Abstract: Building on network theory, this study investigates knowledge development in subsidiaries in the knowledge-intensive business service (KIBS) sector. Foreign subsidiaries’ internal and external networks are divided into three main categories: relations with (1) the local environment (external embeddedness), (2) parent firms (subsidiary--parent firm embeddedness and autonomy), and (3) sister subsidiaries (subsidiary--subsidiary embeddedness). Hypotheses are tested using a sample of 184 subsidiaries, located in the UK, whose parent firms are based outside the UK. While our results indicate that external embeddedness, subsidiary--parent embeddedness, and autonomy are main determinants of knowledge development within KIBS multinational companies, they show no association between subsidiary--subsidiary embeddedness and knowledge development.

Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:taf:servic:v:32:y:2011:i:10:p:1691-1705

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DOI: 10.1080/02642069.2012.665895

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