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Subsidiary roles and dual knowledge flows between MNE subsidiaries and headquarters: The moderating effects of organizational governance types

Jeoung Yul Lee, Alfredo Jiménez and Krishna Raj Bhandari

Journal of Business Research, 2020, vol. 108, issue C, 188-200

Abstract: In this paper, we investigate how various types of subsidiary roles affect dual knowledge flows between a focal subsidiary and the multinational enterprise’s headquarters, a thus far overlooked topic in the knowledge management literature. We propose that subsidiaries with a world mandate have a stronger positive impact on dual knowledge flows than subsidiaries with a specialized contributor role. In contrast, we argue that subsidiaries with a local implementer role have a negative impact on dual knowledge flows. Further, we investigate the moderating effect of two different organizational governance types, namely, belonging to a South Korean business group (i.e., Chaebol), and being a small and medium-sized enterprise. Overall, our results from a sample of 1213 foreign manufacturing subsidiaries from 191 South Korean MNEs provide empirical evidence that validates our hypotheses.

Keywords: Dual knowledge flows; Subsidiary roles; Business groups; Small and medium-sized enterprises; South Korean multinational enterprises (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:108:y:2020:i:c:p:188-200

DOI: 10.1016/j.jbusres.2019.10.065

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