The tension of information sharing: Effects on subsidiary embeddedness

Santangelo, Grazia D.

doi:10.1016/j.ibusrev.2011.01.004

Cited by 51 publications

(49 citation statements)

References 96 publications

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“…First, while all firms in principle seek to have positive inflows of knowledge, few firms wish to be the source of (unintended) knowledge outflows (Alcácer 2006;Santangelo 2011). Although in the case of R&D (compared to sales or manufacturing) there is a greater active interest in seeking spillovers, this tendency reflects the capabilities of the firm.…”

Section: Mnes and The Trade-off Between Spatial Separation And Collocmentioning

confidence: 99%

“…The number of specialized universities and institutes in a given scientific field are finite, so even where a technological leader would prefer to avoid spatial proximity with its less-able rivals, it cannot prevent these firms from collocating in order to establish embedded relationships with these institutions. Thus, once competitors collocate, the decision to embed locally in order to access local complementary knowledge depends on entry motivations and firms capabilities since such a decision may bring about risks of unintended knowledge spillovers (Perri et al 2011;Santangelo 2011). In particular, when domestic actors are valuable in terms of knowledge, rivals entering the market with a competence-creating motivation (as opposed to a non-competencecreating motivation) embed in the host economy as their expected payoffs of embeddedness exceed those of isolation (Santangelo 2011).…”

Section: )mentioning

confidence: 99%

“…Thus, once competitors collocate, the decision to embed locally in order to access local complementary knowledge depends on entry motivations and firms capabilities since such a decision may bring about risks of unintended knowledge spillovers (Perri et al 2011;Santangelo 2011). In particular, when domestic actors are valuable in terms of knowledge, rivals entering the market with a competence-creating motivation (as opposed to a non-competencecreating motivation) embed in the host economy as their expected payoffs of embeddedness exceed those of isolation (Santangelo 2011). Moreover, empirical evidence documents that highly capable firms invest more on the relationships with local partners under conditions of low competition, but they also reduce their commitment more to such relationships when the perceived pressure from the competitive environment exceeds a certain threshold as a result of potential loss from outward spillovers (Perri et al 2011).…”

Section: )mentioning

confidence: 99%

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New insights on the role of location advantages in international innovation

Narula¹,

Santangelo²

2012

Handbook of Research on International Strategic Management

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This paper takes a closer look at the role of location advantages in the spatial distribution of MNE R&D activity. In doing so, we have returned to first principles by revisiting our understanding of L and O advantages and their interaction. We revisit the meaning of L advantages, and offer a succinct differentiation of L advantages. We emphasise the importance of institutions, and flesh out the concept of collocation L advantages, which play an important role at the industry and firm levels of analysis. Just because a country possesses certain L advantages when viewed at a macro-level, does not imply that these are available to all industries or all firms in that location without differential cost. When these are linked to the distinction between location-bound and non location-bound O advantages, and we distinguish between MNEs and subsidiaries it allows for a clearer understanding of the MNE's spatially distributed activities. These are discussed here in the context of R&D, which -in addition to the usual uncertainties faced by firms -must deal with the uncertainties associated with innovation. Although prior literature has sometimes framed the centralisation/decentralisation, spatial separation/collocation debates as a paradox facing firms, when viewed within the context of the cognitive limits to resources, the complexities of institutions, and the slow pace of the evolving specialisation of locations, these are in actuality trade-offs firms must make.

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Section: Mnes and The Trade-off Between Spatial Separation And Collocmentioning

confidence: 99%

Section: )mentioning

confidence: 99%

Section: )mentioning

confidence: 99%

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New insights on the role of location advantages in international innovation

Narula¹,

Santangelo²

2012

Handbook of Research on International Strategic Management

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“…Local embeddedness, of course, remains a gradual process, and newly established greenfield subsidiaries are expected to be 'outsiders' at initial entry. It is well-known that moving from an outsider to an insider status is a slow process, since it requires building up a certain degree of social capital to establish ties with the key local players in the innovation system (Figueiredo 2011, Narula andSantangelo 2012), and the level of difficulty to become an insider varies by the extent of industrial concentration (Cantwell and Mudambi 2011). A certain degree of local embeddedness is a sine qua non for most forms of knowledge creation.…”

Section: The Challenges For External Embeddednessmentioning

confidence: 99%

Exploring the Paradox of Competence-creating Subsidiaries: Balancing Bandwidth and Dispersion in MNEs

Narula¹

2014

Long Range Planning

158

148

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This paper seeks to synthesise the various contributions to the special issue of Long Range Planningon competence-creating subsidiaries (CCS), and identifies avenues for future research. Effective competence-creation through a network of subsidiaries requires an appropriate balance between internal and external embeddedness. There are multiple types of firm-specific advantages (FSAs) essential to achieve this. In addition, wide-bandwidth pathways are needed with collaborators, suppliers, customers as well as internally within the MNE. Paradoxically, there is a natural tendency for bandwidth to shrink as dispersion increases. As distances (technological, organisational, and physical) become greater, there may be decreasing returns to MNE spread. Greater resources for knowledge integration and coordination are needed as intra-and inter-firm R&D cooperation becomes more intensive and extensive. MNEs need to invest in mechanisms to promote wide-bandwidth knowledge flows, without which widely dispersed and networked MNEs can suffer from internal market failures.

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“…The evolution of the global economy and improved access to goods and resources from distant locations has placed knowledge at the core of firms' competitive advantages (Zander, Kogut 1995;Jensen, Szulanski 2007;Sala-I-Martin et al 2012). …”

Section: Clusters In Terms Of Globalizationmentioning

confidence: 99%

Clusters’ Role in Globalization

Razminienė¹,

Tvaronavičienė²

2017

Proceedings of 5th International Scientific Conference Contemporary Issues in Business, Management and Education ‘2017

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Abstract. The purpose of this study is to review globalization literature and cluster literature to see how these two phenomena are understood, which perspective scholars refer to when analysing globalization and clusters, how can the approaches explain each other. The attention was focused more on the outcomes of globalization for the countries that are a part of the ongoing proccess rather than theoretical aspects, while cluster literature was chosen to address globalization and the attempt was to see the links between these phenomena. Bibliometrical analysis is used for the purpose, articles selected from the Emerald Insight database. The findings suggest that the main concern caused by globalization is inequality of income and wage which can be reduced by education for people can gain skills and knowledge which would make them competitive in demanding environment. Competitiveness is emphasized in cluster definition and the processes of globalization are seen as advantageous for cluster development. This literature review needs further analysis with more articles taken into consideration. The concept is advanced and developed, so there are many studies made regarding this topic. In this paper a certain aspect is observed to see how far the concept has advanced and how scholars view it.

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The tension of information sharing: Effects on subsidiary embeddedness

Cited by 51 publications

References 96 publications

New insights on the role of location advantages in international innovation

New insights on the role of location advantages in international innovation

Exploring the Paradox of Competence-creating Subsidiaries: Balancing Bandwidth and Dispersion in MNEs

Clusters’ Role in Globalization

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