Scandinavian Working Papers in Business Administration

Working Papers,
Copenhagen Business School, Department of International Economics and Management

No 6-2000: Transferring Knowledge in MNCs: The Role of Sources of Subsidiary Knowledge and Organizational Context

Nicolai J. Foss and Torben Pedersen
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Nicolai J. Foss: Department of Industrial Economics and Strategy, Postal: Department of Industrial Economics and Strategy, Copenhagen Business School, Howitzvej 60, 2nd floor , DK-2200 Copenhagen N, Denmark
Torben Pedersen: Department of International Economics and Management, Copenhagen Business School, Postal: Department of International Economics and Management, Copenhagen Business School, Howitzvej 60, 2nd floor , DK-2200 Copenhagen N, Denmark

Abstract: We link up with the recent literature on the differentiated MNC with its stress on intra-MNC knowledge flows. However, rather than focusing on the characteristics of knowledge as determinants of knowledge transfer within MNCs, we focus instead on levels of knowledge in subsidiaries, the sources of transferable subsidiary knowledge, and on the organizational means and conditions that realize knowledge transfer as the relevant determinants. We find largely positive support for the relevant hypotheses which are tested on a unique dataset on knowledge development in subsidiary firms (the Centre of Excellence-project).

Keywords: Multinational corporations; Knowledge creation; Knowledge transfer; Subsidiary firms; Inter-organizational networks

25 pages, June 7, 2000

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