Internal Embeddedness, Geographic Distance, and Global Knowledge Sourcing by Overseas Subsidiaries

10 Pages Posted: 27 Jul 2018

See all articles by Kazuhiro Asakawa

Kazuhiro Asakawa

Keio University - Graduate School of Business Administration

Yeonjin Park

Seoul National University

Jaeyong Song

Seoul National University

Sang-Ji Kim

Samsung Economic Research Institute

Date Written: October 2017

Abstract

We investigate determinants of global knowledge sourcing of overseas R&D subsidiaries, shedding light on vertical cross-border embeddedness within firms. Drawing on the paradox of embeddedness perspective, which assumes that embeddedness may facilitate or hinder knowledge transfer, we examine the extent to which different types of internal vertical embeddedness – administrative versus knowledge – facilitate global knowledge sourcing. We find that vertical administrative embeddedness inhibits global knowledge sourcing, while vertical knowledge embeddedness promotes it. We also find differing moderating effects of geographic distance between headquarters and its subsidiaries on the association between vertical embeddedness and global knowledge sourcing.

Keywords: global knowledge sourcing, internal vertical embeddedness, geographic distance, overseas R&D subsidiaries

Suggested Citation

Asakawa, Kazuhiro and Park, Yeonjin and Song, Jaeyong and Kim, Sang-Ji, Internal Embeddedness, Geographic Distance, and Global Knowledge Sourcing by Overseas Subsidiaries (October 2017). Journal of International Business Studies, Vol. 49, Issue 6, 2017, Available at SSRN: https://ssrn.com/abstract=3219040 or http://dx.doi.org/10.1057/s41267-017-0112-x

Kazuhiro Asakawa (Contact Author)

Keio University - Graduate School of Business Administration ( email )

4-1-1 Hiyoshi,
Kohoku-ku
Yokohama, 223-8526
Japan

Yeonjin Park

Seoul National University ( email )

Kwanak-gu
Seoul, 151-742
Korea, Republic of (South Korea)

Jaeyong Song

Seoul National University ( email )

Kwanak-gu
Seoul, 151-742
Korea, Republic of (South Korea)

Sang-Ji Kim

Samsung Economic Research Institute

28~31th Fl., Samsung Life Seocho Tower
1321-15, Seocho 2-dong, Seochoro 402, Seocho-gu
Seoul, 137-072
Korea, Republic of (South Korea)

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