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AIB 2012 Conference Proceedings - Academy of International ...

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SUNDAY<br />

(For more information, please contact: Paz Estrella Tolentino, Birkbeck, University <strong>of</strong> London, United Kingdom:<br />

p.tolentino@bbk.ac.uk)<br />

Congruence between Subsidiary Strategic Role and Relational Characteristics on Knowledge Development:<br />

Evidence from the UK KIBS Sector<br />

Zhaleh Najafi Tavani, University <strong>of</strong> Leeds<br />

Ghasem Zaefarian, University <strong>of</strong> Leeds<br />

Peter Naude , University <strong>of</strong> Manchester<br />

Stephan Henneberg, University <strong>of</strong> Manchester<br />

Axèle Giroud, University <strong>of</strong> Manchester<br />

Grounded in configuration theory and the network view <strong>of</strong> the firm, this research seeks to understand how the<br />

congruence <strong>of</strong> subsidiary's strategic role and subsidiary-parent relational characteristics relate to knowledge<br />

development. Our configuration analysis, utilizing pr<strong>of</strong>ile deviation for each subsidiary strategic role, used a<br />

sample <strong>of</strong> 184 foreign subsidiaries operating in knowledge intensive business services in the U.K. The results<br />

provide support for equifinality <strong>of</strong> alternative subsidiary strategic roles and indicate that the subsidiary's internal<br />

ability to develop knowledge is greater when the underlying relational characteristics match those <strong>of</strong> ideal types<br />

for a given subsidiary strategic role. (For more information, please contact: Zhaleh Najafi Tavani, University <strong>of</strong><br />

Leeds, United Kingdom: z.najafitavani@leeds.ac.uk)<br />

The Interplay <strong>of</strong> Networking Activities and Internal Knowledge Actions for Subsidiary Influence within MNCs<br />

Zhaleh Najafi Tavani, University <strong>of</strong> Leeds<br />

Axèle Giroud, University <strong>of</strong> Manchester<br />

Ulf Andersson, Copenhagen Business School<br />

Building on resource dependency theory; this research investigates the joint impacts <strong>of</strong> subsidiary knowledge<br />

based actions (Reverse Knowledge Transfer (RKT) and knowledge development) and networking activities<br />

(internal and external embeddedness) on its strategic influence in the multinational corporation. The proposed<br />

model was tested with data on 184 foreign owned subsidiaries in the United Kingdom. The results indicate that<br />

the possession <strong>of</strong> strategic resources (knowledge or embedded relations) is not adequate for a subsidiary to<br />

increase its influence unless it is accompanied with RKT. (For more information, please contact: Zhaleh Najafi<br />

Tavani, University <strong>of</strong> Leeds, United Kingdom: z.najafitavani@leeds.ac.uk)<br />

Session: 1.1.9 - Competitive<br />

Track: 6 - Innovation and Knowledge Mgmt.<br />

Knowledge at Home and Abroad: Who Knows What<br />

Presented On: July 1, <strong>2012</strong> - 09:00-10:15<br />

Chair: Denise Dunlap, Northeastern University<br />

How Do Cosmopolitan and Local Employees Influence Innovativeness <strong>of</strong> Foreign and Domestic Firms<br />

Annique Un, Northeastern University<br />

Fernando Muñoz-Bullón, Universidad Carlos III de Madrid<br />

Maria Sánchez-Bueno, Universidad Carlos III de Madrid<br />

We analyze the effects <strong>of</strong> skills <strong>of</strong> employees on innovation <strong>of</strong> subsidiaries <strong>of</strong> foreign multinational enterprises<br />

(MNEs) and domestic firms competing in the same country. In contrast to previous studies that argue that<br />

subsidiaries <strong>of</strong> foreign MNEs suffer from a disadvantage or liability <strong>of</strong> foreignness in comparison to domestic<br />

<strong>AIB</strong> <strong>2012</strong> <strong>Conference</strong> <strong>Proceedings</strong><br />

Page 19

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