“…Furthermore, affective trust alleviates concerns regarding the risks of sharing tacit knowledge (Katsikeas, Skarmeas, and Bellow 2009) by providing an environment "in which people feel secure and psychologically safe to make mistakes and offer and receive criticism" (Atuahene-Gima and Murray 2007, p. 7). Because affective trust fosters tacit-knowledge sharing (Katsikeas, Skarmeas, and Bellow 2009;Li, Poppo, and Zhou 2010) and enhances MNCs' new product innovation (Brattström, Löfsten, and Richtnér 2012), we propose that it directly influences MNCs' product innovation ability and weakens the negative relationship between subsidiary tacit-knowledge level and MNCs' product innovation ability.…”