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Past Issue • Oct-Dec 2015

Accessing Knowledge from an Advanced Subsidiary: Power Asymmetries within Emerging Economy MNEs

Leveraging knowledge from geographically spread R&D subsidiaries is a crucial source of competitive advantage for multinational enterprises (MNEs). The authors investigate the determinants of knowledge transfer to and from newly acquired subsidiaries in the context of emerging economies and advanced economies. Based on evidence from the global wind power industry, it emerges that the determinants of ‘traditional’ parent-to-subsidiary knowledge transfer and ‘reverse’ transfer are more complicated than imagined.
In today’s knowledge economy, multinational enterprises (MNEs), are increasingly competing on their R&D capabilities. Their R&D investments are continuing to rise at home, as well as, in many of their host countries. By establishing R&D subsidiaries in foreign locations, MNEs can, among other things, gain access to different national innovation systems, facilitate technology adaptation and create new alliances with customers, competitors, universities and public R&D institutes. As the sources of knowledge become more dispersed geographically, MNEs utilise their global presence to enhance their innovation capabilities. As a result, R&D internationalisation has become one of the key factors in shaping MNEs’ competitive strategy.

ABOUT THE AUTHORS

  • snehal

    Snehal Awate

    Snehal Awate is Assistant Professor of Strategy at the Indian School of Business.
  • marcus

    Marcus M Larsen

    Marcus M Larsen is Assistant Professor at the Department of Strategic anagement and Globalisation at the Copenhagen Business School.
  • ram

    Ram Mudambi

    Ram Mudambi is Professor of Strategy at the Fox School of Business in the Temple University.
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