The geographic scope of the MNC and its alliance portfolio: Resolving the paradox of distance

Zaheer, Akbar; Hernandez, Exequiel

doi:10.1002/gsj.6

Cited by 86 publications

(87 citation statements)

References 72 publications

(91 reference statements)

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“…However, these variations, according to Lundquist and Trippl (2013), can be both a major source of innovative practices as well as barriers for interaction and knowledge exchange among firms. This view is consistent with Zaheer and Hernandez's (2011), assertion of "the paradox of distance". They argue that, whereas research focused on "knowledge transfer", emphasizes costs of distance for performance, those exploring the need for innovation, discusses the benefits of reaching far for novel and diverse ideas.…”

Section: P1 Mne Subsidiaries' Csr Practices When Tailored To Suit Tsupporting

confidence: 90%

“…It is worthwhile noting, however, that the nature of interaction between MNEs' headquarters and subsidiaries may be relevant in exploring how knowledge and resources flow to foreign subsidiaries (Zaheer and Hernandez, 2011), which in a way amplifies the dynamics of distance and proximity. Moreover, extant literature (e.g., Zaheer, 1995) suggests that foreign subsidiaries of MNEs lacking in knowledge and key resources, relative to local firms, imitate (mimetic isomorphism) other firms in response to pressures (DiMaggio and Powell, 1983).…”

Section: Mnes' Internal Embeddednessmentioning

confidence: 99%

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Multinational Enterprises and Distance: Exploring Opportunities and Challenges Involved in Practicing CSR in Host-Countries

Amos¹,

Awuah²

2017

IJoBM

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Section: P1 Mne Subsidiaries' Csr Practices When Tailored To Suit Tsupporting

confidence: 90%

Section: Mnes' Internal Embeddednessmentioning

confidence: 99%

Multinational Enterprises and Distance: Exploring Opportunities and Challenges Involved in Practicing CSR in Host-Countries

Amos¹,

Awuah²

2017

IJoBM

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“…Some of these activities are conducted within the hierarchy of the company and others through contracts and social relationships (Doz et al, 2001;Gibbons and Henderson, 2012). In this sense, a multinational cannot be defined only by the extension of its foreign production premises but by the sum of all of its internal and external activities that aggregate value (Andersson et al, 2007;Zaheer and Hernandez, 2011). As a result, multinationals are turning their structures into open and flexible networks with subsidiaries that generate and share knowledge in local and global contexts (Cantwell et al, 2010;Zohdi et al, 2013).…”

Section: Relational Capabilities and Globalization Of Innovationmentioning

confidence: 99%

“…In response to the increasing need to balance the pressures of global integration and local responsiveness, foreign subsidiaries should play a prominent role in creating knowledge that is valuable to the MNE (multinational enterprise) as a whole (Rabbiosi, 2011;Zaheer and Hernandez, 2011). Teece (2014) claims that the proper integration of the R&D units of a MNE may result not only in new products but also in organizational dynamic capabilities.…”

Section: Effective Governance Mechanismsmentioning

confidence: 99%

Global Organization of Innovation and Cooperability in Brazilian Multinationals

Costa

Porto

Galina

et al. 2017

Journal of Technology Management & Innovation

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Understanding the dissipation of innovations is necessary to develop them, as a company on its own does not have all the capabilities that it needs. On the contrary, they are increasingly spread over internal and external contexts, and are not developed in isolation. Most of the time, they depend on interactive, innovative processes in a global context. The aim of this study is to evaluate how the global organizational structure of innovation affects the dynamic capability of cooperation (cooperability) in Brazilian multinationals (BMNs). To achieve this goal, we conducted a survey of BMNs, and a final sample of 60 companies answered a structured questionnaire. We performed statistical tests such as Factor Analysis, Cronbach's Alpha, Multiple Regression and Hierarchical Cluster, and cross-analysis of quantitative results that enabled us to create a Cooperability Model, that is, a model of local, international and global development for a dynamic capability of cooperation in BMNs. The results show that technological strengths of foreign subsidiaries and the reverse transfer of their capabilities to the parent company and technology partners affect the dynamics of cooperation in BMNs (inputs and results of cooperability). Furthermore, we detected an inverse relationship between the autonomy of foreign subsidiaries and the dynamic of cooperation in BMNs.

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“…While cooperation can take many forms, here we are interested in that between firms engaged in joint work through cross-border alliances. These international collaborations have increased dramatically over the last few decades as globalization has made opportunities for value creation through resource sharing across geographies a highly attractive proposition (Gomes-Casseres 1996), particularly when it comes to knowledge-related activities (Zaheer and Hernandez 2011). Indeed, much academic and managerial writing has been dedicated to the value creation aspects of such alliances (Lavie 2006 provides a good review).…”

Section: Introductionmentioning

confidence: 99%

Liberty in Law? Intellectual Property Rights and Global Alliance Networks

Balachandran

Hernandez

2016

AMPROC

Self Cite

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Do formal legal institutions complement or substitute social network mechanisms of knowledge protection? We explore how the composition and structure of firms' international alliance networks changes in response to the passage of intellectual property rights (IPR) laws in their home countries. We find that, when IPR laws are strengthened, firms form more international alliances, particularly if they operate in IP intensive industries, and do so with partners from a greater diversity of countries. The significance of status (centrality) as a predictor of international alliance formation decreased after the passage of IPR laws, in line with a substitution effect that 'democratized' access to the global network by increasing the participation of firms that were peripheral before the legal changes. In contrast, the closure of firms' alliance networks increased with stronger IPR laws, in line with a complementarity effect that increased the use of social control. The increase in closure was strongest in the networks of the low status entrants into the global network. Using a difference-indifference empirical design, we found that these changes coincided exactly with the timing of the passage of the laws across thirteen countries between 1988 and 2005. This study addresses issues of great theoretical and practical importance to the literatures on institutions, networks, and IPR. Abstract: Do formal legal institutions complement or substitute social network mechanisms of knowledge protection? We explore how the composition and structure of firms' international alliance networks changes in response to the passage of intellectual property rights (IPR) laws in their home countries. We find that, when IPR laws are strengthened, firms form more international alliances, particularly if they operate in IP intensive industries, and do so with partners from a greater diversity of countries. The significance of status (centrality) as a predictor of international alliance formation decreased after the passage of IPR laws, in line with a substitution effect that 'democratized' access to the global network by increasing the participation of firms that were peripheral before the legal changes. In contrast, the closure of firms' alliance networks increased with stronger IPR laws, in line with a complementarity effect that increased the use of social control. The increase in closure was strongest in the networks of the low status entrants into the global network. Using a difference-in-difference empirical design, we found that these changes coincided exactly with the timing of the passage of the laws across thirteen countries between 1988 and 2005. This study addresses issues of great theoretical and practical importance to the literatures on institutions, networks, and IPR. In an increasingly knowledge-based economy, interfirm collaborations are essential for many firms and industries. These collaborations are often globally dispersed because knowledge and resources are widely distributed across countries (Rosenkopf and Almei...

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The geographic scope of the MNC and its alliance portfolio: Resolving the paradox of distance

Cited by 86 publications

References 72 publications

Multinational Enterprises and Distance: Exploring Opportunities and Challenges Involved in Practicing CSR in Host-Countries

Multinational Enterprises and Distance: Exploring Opportunities and Challenges Involved in Practicing CSR in Host-Countries

Global Organization of Innovation and Cooperability in Brazilian Multinationals

Liberty in Law? Intellectual Property Rights and Global Alliance Networks

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