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The Multinational Corporation and the Global Sourcing of Knowledge: Remodeling Absorptive Capacity

Constantina Kottaridi (), Marina Papanastassiou, Christos Pitelis () and Dimitrios Thomakos

No DYNREG35, Papers from Economic and Social Research Institute (ESRI)

Abstract: We build on extant theory of the MNC, MNC subsidiaries, absorptive capacity and Penrose's concept of 'productive opportunity' to develop a framework on the MNC and absorptive capacity (AC) that allows us to explore the role of subsidiaries in the global sourcing of knowledge. We develop and test hypotheses using primary questionnaire-collected data. Our results support the idea that subsidiaries' realized AC can be improved by the realized and potential AC of the MNC group and the subsidiary and in turn may improve the performance of the subsidiaries and the group as a whole.

Keywords: Multinational Corporation; absorptive capacity; subsidiaries; knowledge (search for similar items in EconPapers)
Pages: 34 pages
Date: 2008
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