Dimensions of Foreign Subsidiary’s Absorptive Capacity in the Context of Knowledge Transfer through Expatriation*

2013 ◽  
Vol 29 (3) ◽  
pp. 127-0
Author(s):  
Joanna Purgał‑Popiela

The absorptive capacity is one of the dynamic capabilities determining organizational development, including international expansion. This also refers to foreign subsidiaries, which receive significant portion of knowledge from headquarters and other units through expatriation. However, effects of such knowledge transfers are affected by absorptive capacity of a subsidiary. While considering the issue of the transfer, it is recommended to assess the readiness and willingness of subsidiary employees to learn from expatriates and change. These qualities are, undoubtedly, an essential component of organizational absorptive capacity, however its content seems to be more complex, due to its multidimensional and contextual nature. Therefore, the author attempts to apply this concept in the context of expatriate knowledge transfer*.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Madhavi Kapoor ◽  
Vijita Aggarwal

Purpose This study aims to investigate the relationship among knowledge transfer enablers, knowledge transfer process, absorptive capacity and innovation performance in the context of Indian international joint ventures (IJVs). These elements are woven with the thread of dynamic capabilities theory (DCT) into an integrated framework. Design/methodology/approach Data analysis is conducted on a quantitative survey of 196 IJVs with partial least squares structural equation modeling as the statistical technique. Findings Co-learning strategy, collaborative trust culture, information technology-based resources and systems and organizational structural design are found to be significant knowledge transfer enablers. Absorptive capacity has a complementary partial mediation effect on the positive relationship between knowledge transfer and innovation performance of Indian IJVs. Research limitations/implications The study has pioneered in explicating the criticality of IJV’s internal dynamics to cope with the global market dynamism in a much needed Indian context. Practitioners must focus on building dynamic capabilities in IJVs to make them sustainably competitive, as proposed and evaluated by this study. Further, IJV managers need to strategize their resources, routines and structure dynamically to foster knowledge transfer and innovativeness. Originality/value The comprehensive model on DCT offered by this study is rare to match in literature with a completely new context, which is the need of the hour.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mehdi Rasouli Ghahroudi ◽  
Seyed Hossein Chabok ◽  
Kieran M. Conroy

Purpose This study aims to focus on dual embeddedness as an important channel through which foreign subsidiaries access and share valuable and idiosyncratic knowledge within the multinational corporation (MNC). The authors examine the dual embeddedness challenges of foreign subsidiaries based in the context of Iran as a transitional market. Design/methodology/approach The final sample includes 144 active foreign subsidiaries in Iran from across a broad range of industries. A structured questionnaire was distributed to firms and structural equation modeling was adopted to analyze the results. Findings The findings reveal how building external embeddedness in an environment with potentially poor access to valuable knowledge, and risk of knowledge leakage impacts the subsidiary’s ability to subsequently transfer this knowledge within the MNC. The authors identify the significance of absorptive capacity as a way for the subsidiary to access knowledge from and share knowledge with firms in the local market. Originality/value Departing from existing work on subsidiary embeddedness in developed markets, the authors reveal how competence creating subsidiaries manage dual embeddedness and knowledge transfer in transition economies that are low in knowledge stocks. The authors unpack how subsidiary absorptive capacity enables access to local knowledge in a transitional market and increases reverse knowledge transfer in the MNC. In doing so, the authors answer calls for work on the dynamic and complementary relationships that exists between subsidiary dual embeddedness, absorptive capacity and knowledge sourcing in less open markets. Focusing on Iran as a transitional economy, this study provides greater contextual nuance to the extant literature on subsidiary dual embeddedness.


2017 ◽  
Vol 30 (3) ◽  
pp. 417-430 ◽  
Author(s):  
Álvaro Dias ◽  
Pereira Renato

Purpose The purpose of this paper is to offer an operationalization of an aggregate construct and a decisive contribution to building a dynamic capabilities theory with marketing implications. The authors investigate the influence of dynamic capabilities, specifically routine creation through embedding learning and knowledge, on marketing capabilities and performance in Portugal. The authors examine the direct relationship between dynamic capabilities and marketing capabilities, which is indirectly linked to performance depending on the effectiveness of the resulting new resource configuration. Design/methodology/approach The authors used four construct dimensions: knowledge creation routines, knowledge transfer processes, marketing capabilities, and firm performance. The study was based on an inter-industry random sample of firms selected from a commercial list. During a nine-month period the authors gathered data from a questionnaire delivered in hand to participating firms and collected through in-depth personal interviews. It was filled out by directors of Portuguese firms who agreed to participate in this study. Findings First, dynamic capabilities play an important role in the evolution of marketing capabilities and the maintenance of competitive advantage. Specifically, the authors identified a link between knowledge creation routines and knowledge transfer processes with marketing capabilities. Second, the effect of dynamic capabilities on performance can be considered to be substantially indirect. However, the results also show a direct link between knowledge transfer and performance. Originality/value First, the development of a model establishing the contribution to the evolution of marketing capabilities in order to compete in a changing environment, considering the critical effect of knowledge creation and transfer in a non-static market configuration. Second, the analysis of marketing capabilities from different layers, from strategic to more operational aspects.


2014 ◽  
Vol 522-524 ◽  
pp. 1850-1852
Author(s):  
Chun Wang Tsou ◽  
Pakarapong Supakarapongkul ◽  
Saksit Pornjirattikal ◽  
Yin Tsuo Huang

This explanatory research explores the relationship among environmental uncertainty, knowledge transfers mechanisms, dynamic capability, and competitive advantage. A total of 235 project managers employed by energy companies in Thailand were invited to participate in the study. The findings indicated that (a) through knowledge transfer mechanisms, project teams could develop an energy enterprises core competence and build its competitive advantage, (b) the relationship between environmental uncertainty and knowledge transfer mechanisms is negative, and (c) dynamic capability and competitive advantage have a positive relationship. The limitations of the study regarding generalization, and recommendations for future research to replicate the study in other countries, are also included.


2019 ◽  
Vol 40 (1) ◽  
pp. 107-123 ◽  
Author(s):  
Kung Wong Lau ◽  
Pui Yuen Lee ◽  
Yan Yi Chung

Purpose Organizational learning is traditionally structured with conventional in-house learning models aiming to equip employees with practical skills for operational needs. In contrast, contemporary goals emphasize unstructured organizational learning provided with learning environments to facilitate employees’ formal and informal knowledge creation. Therefore, the conventional organizational learning models are facing tremendous challenges, and it is crucial to change the traditional modes of practice into a new approach of collective learning and knowledge transfer. As well, the emergence of innovative business environments and tacit knowledge-based society urges a new form of organizational learning model to cope with employees’ learning, knowledge transfer and even knowledge management. The paper aims to discuss these issues. Design/methodology/approach In this study, the authors’ team applied a typological review for systematically analyzing current organizational learning models aiming to modify and create a new collective model. Findings The new model covers the strengths of existing approaches from which the fundamental 3Ps (i.e. principles, purposes and processes of organizational learning) concept is derived from incorporating a development perspective of organizational trajectories and technological innovations. Originality/value The authors envisage that the new model can facilitate organizations to assess and adapt their organizational learning needs and orientations by applying this organic and dynamic model which emphasizes assessment in relation to the competitive environment, technological trends and organizational growth.


2018 ◽  
Vol 11 (4) ◽  
pp. 483-496 ◽  
Author(s):  
Vijita Aggarwal ◽  
Madhavi Kapoor

Purpose The purpose of this paper is to conduct a literature review on knowledge transfer and international strategic alliances to propose a research framework based on the theory of dynamic capabilities. A qualitative and quantitative review has been conducted to find out the past research patterns, emerging trends, and research gaps. Design/methodology/approach The qualitative review of more than 300 articles identified by keyword search, reference, and citation search has resulted in 130 most relevant articles. Citation analysis is performed on these studies, their journals, and authors by leveraging the international platforms of SCImago Journal Ranking, Google Scholar, and ResearchGate. Findings The study enlists the highly cited studies, their journals, and authors with possible explanations for being highly cited. Criticisms of dynamic capabilities theory have been explained, and a research framework for the application of this theory in the context of international strategic alliances to fill the research gap has been proposed. Originality/value Currently, various bibliometric studies are growing in number. This study is not only a review study, but also proposes a research framework to fill the identified research gap.


Sign in / Sign up

Export Citation Format

Share Document