“…A related question therefore is how the wider cultural and institutional environment in turn shapes such organizational contingency factors. Finally, although social perspectives on MNE knowledge processes are still relatively scarce, such studies are on the rise (e.g., Hong et al, 2006a;Saka-Helmhout, 2009 Reagans andMcEvily, 2000: Szulanski, 1996), others see organizational learning as the antecedent (e.g., Schilling, 2002), and still others view the two concepts as having a recursive relationship (e.g., Cohen and Levinthal, 1990;Lane and Lubatkin, 1998;Tsai, 2001). In this paper, we concur with the (recursive) view that a subsidiary's capacity to acquire and utilize externally held knowledge is an antecedent to subsidiary learning, and in turn see subsidiaries' absorptive capacity as generated by "sociopsychological learning processes" (Sun and Anderson, 2010: 141) that are conditional on organizational conditions (Lane et al, 2006).…”