Building subsidiary local responsiveness: (When) does the directionality of intrafirm knowledge transfers matter?

Najafi-Tavani, Zhaleh; Robson, Matthew J.; Zaefarian, Ghasem; Andersson, Ulf; Yu, Chong

doi:10.1016/j.jwb.2018.01.004

Cited by 24 publications

(28 citation statements)

References 130 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…However, the global strategy literature has focused primarily on the issue of knowledge management, rather than understanding the specific environmental contexts in local markets or the influence of strategic orientation on knowledge management processes. Specifically, there has been little attention so far to the environment-strategyknowledge management-performance (ESKMP) linkage at the MNC subsidiary level (Vanaik and Midgley, 2019;Najafi-Tavani, Robson, Zaefarian, Andersson and Yu, 2018).…”

Section: Introductionmentioning

confidence: 99%

The performance implications of knowledge management and strategic alignment of MNC subsidiaries

Dabić

Kiessling

2019

JKM

View full text Add to dashboard Cite

Purpose The purpose of this paper was to investigate antecedents and results of strategic choices of multinational corporation (MNC) subsidiaries in Croatia economy. Hence, the authors examined knowledge management and its association with performance. Additionally, they explored which of the strategies will be most likely chosen by subsidiaries in transitional economies that are characterized by market volatility and uncertainty. Design/methodology/approach Data were collected from a survey of 131 MNC subsidiaries operating in Croatia. To test the theoretical correlation between knowledge management capabilities and strategic orientation, the authors used the ANCOVA method and controlled for industry, years in international business and firm size. Findings The results pointed out the recognized necessities for a specific alignment between environment, strategy and knowledge management capabilities. The findings also suggest that there is a positive relationship between knowledge management and performance. Research limitations/implications As with most of the research, this paper has limitations. First, all data were collected using self-report surveys raising the possibility of response set biases. Additionally, all data were collected at one point in one country specifically in Croatia. Practical implications Clearly, there is substantial interaction between the MNC subsidiary’s environment and the MNC subsidiary’s strategic orientation. Most notably, the environment studied here was at the competitive and consumer market level. Firms need to develop a strategic plan for knowledge management based upon the local environmental influences. Social implications Other firms from Central and Eastern European and developed countries may compare their own environment, strategy and knowledge management practices in MNCs with findings from Croatia to be aware of similarities and market differences. Originality/value The strategic employment of knowledge acquisition, conversion and application are examined across firms using the Prospector, Analyzer, Defender and Reactor strategic orientations.

show abstract

Section: Introductionmentioning

confidence: 99%

The performance implications of knowledge management and strategic alignment of MNC subsidiaries

Dabić

Kiessling

2019

JKM

View full text Add to dashboard Cite

show abstract

“…This is because target firm employees struggle to retain their identity and may even be less efficient after the acquisition (Du & Sim, 2016). It is imperative for target firms to understand the extent to which they can absorb knowledge through their employees, as this is an acknowledged source of advantage and way of realising an acquisition's strategic intent (Cohen & Levinthal, 1990;Najafi-Tavani et al, 2018;Volberda, Foss, & Lyles, 2010). Cohen and Levinthal (1990) reported that absorptive capacity depends on the efforts of employees and the firm's ability to effectively utilise their acquired knowledge.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Achieving effective knowledge flow largely involves seamlessly transplanting knowledge into a target firm (Hurtado-Ayala & Gonzalez-Campo, 2015;Najafi-Tavani et al, 2018). Absorptive capacity is regarded as a supportive tool in the mobilisation of knowledge flow as it incorporates processes to introduce, integrate and assimilate knowledge into the firm.…”

Section: Absorptive Capacity and Knowledge Flowmentioning

confidence: 99%

“…Sears and Hoetker (2014) asserted that the integration of the target firm's and the acquiring firm's knowledge set is a precursor to value creation. Knowledge flows into a target firm require a 'linkage' or effective processes to be in place (Nair et al, 2016;Najafi-Tavani, Robson, Zaefarian, Andersson, & Yu, 2018). This 'linkage' allows knowledge to flow efficiently within the target firm, thereby creating a larger pool of knowledge that is directed at realising the intended outcome from the acquisition.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Mergers and acquisitions in emerging markets: What drives absorptive capacity in target firms?

Pillay

Chiba

Verachia

et al. 2021

South African Journal of Business Management

View full text Add to dashboard Cite

Purpose: The purpose of this study was to investigate how knowledge flow and productivity affect the absorptive capacity of target firms in emerging markets.Design/methodology/approach: We used self-administered questionnaires to measure absorptive capacity, knowledge flow and productivity constructs. The sample comprised individuals who were employees of firms that completed acquisitions between 2015 and 2017. The acquisitions were publicly announced and the target firms were all in emerging markets.Findings/results: Firstly, our results confirmed the multidimensional nature of absorptive capacity. Secondly, we found a positive correlation between a target firm’s knowledge flow and productivity and its absorptive capacity. Thirdly, our results indicated that knowledge flow and operational processes will support the introduction and integration of external knowledge into a target firm. Therefore, understanding the absorptive capacity of target firms is central to the ability of new and existing knowledge to be assimilated.Practical implications: The realisation of the strategic intent of an acquisition is dependent on effective knowledge flow, supported by efficient communication and operational processes. The target firm’s absorptive capacity is, therefore, a key consideration for acquiring firms. Understanding this will be useful for firms to consider acquisitions of target firms in emerging markets and could potentially enhance their chances of success.Originality/value: This study contributes to the limited body of research on emerging market merger and acquisition activity. It responds to the call for further research to be conducted on emerging markets and the role of absorptive capacity in realising the strategic intent of acquisitions.

show abstract

“…Such risk is prevalent even for top‐level managers with well‐utilized institutional ties. Managers understand that it is the sagacious use of financial resources, not their superiority, which creates competitive advantages in emerging markets (Najafi‐Tavani, Robson, Zaefarian, Andersson, & Yu, 2018).…”

Section: Theoretical and Practical Implicationsmentioning

confidence: 99%

Corporate sustainability strategies in institutional adversity: Antecedent, outcome, and contingency effects

2020

Self Cite

View full text Add to dashboard Cite

This study examines (i) how top‐level managerial institutional ties drive corporate sustainability strategies of emerging market firms operating under conditions of institutional adversity; (ii) the impact of corporate sustainability strategies on market performance; and (iii) the moderating role of financial resource slack on the relationships between corporate sustainability strategies and market performance. The study builds from institutional development logic and the structure–conduct–performance paradigm. Primary data are collected from 300 firms operating in a major sub‐Saharan African market. Findings show that top‐level managerial institutional linkages with regulatory national governmental officials, local community leaders, and top managers at other firms drive corporate proactive and responsive sustainability strategies, which in turn influence market performance. In addition, the findings reveal that financial resource slack strengthens the path between corporate proactive sustainability strategies and market performance, but not the path between corporate responsive sustainability strategies and market performance. Theoretical and practical implications are discussed.

show abstract

Building subsidiary local responsiveness: (When) does the directionality of intrafirm knowledge transfers matter?

Cited by 24 publications

References 130 publications

The performance implications of knowledge management and strategic alignment of MNC subsidiaries

The performance implications of knowledge management and strategic alignment of MNC subsidiaries

Mergers and acquisitions in emerging markets: What drives absorptive capacity in target firms?

Corporate sustainability strategies in institutional adversity: Antecedent, outcome, and contingency effects

Contact Info

Product

Resources

About