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Addressing dual embeddedness: The roles of absorptive capacity and appropriabilitymechanisms in subsidiary performance
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
School of Social Sciences, Södertörn University.
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.ORCID iD: 0000-0002-9707-7068
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2017 (English)In: Industrial Marketing Management, ISSN 0019-8501, E-ISSN 1873-2062Article in journal (Refereed) Epub ahead of print
Abstract [en]

This study examines how subsidiaries can manage dual embeddedness with both local partners and a multinational enterprise. Specifically, we examine the role of absorptive capacity and appropriability mechanisms on subsidiary performance. We analyse how absorptive capacity and appropriability enable subsidiaries to successfully address knowledge challenges related to internal and external networks. We conducted an empirical analysis on a sample of 165 subsidiaries. Our results suggest that absorptive capacity has a direct, positive effect on subsidiary performance, which is greater in emerging countries. The study also found an indirect effect of absorptive capacity on subsidiary performance, which is mediated through appropriability mechanisms. These findings extend the literature on international networks, dual embeddedness and absorptive capacity

Place, publisher, year, edition, pages
Elsevier, 2017.
National Category
Social Sciences Other Engineering and Technologies not elsewhere specified Business Administration
Research subject
Entrepreneurship and Innovation; Accounting and Control
Identifiers
URN: urn:nbn:se:ltu:diva-64206DOI: 10.1016/j.indmarman.2017.06.002OAI: oai:DiVA.org:ltu-64206DiVA: diva2:1111809
Available from: 2017-06-19 Created: 2017-06-19 Last updated: 2017-06-26

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Publisher's full texthttp://www.sciencedirect.com/science/article/pii/S0019850117304480

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