Pursuing a nodal (i.e., subsidiary) level of analysis, this paper advances and tests an overarching theoretical framework pertaining to intracorporate knowledge transfers within multinational corporations (MNCs). We predicted that (i) knowledge outflows from a subsidiary would be positively associated with value of the subsidiary’s knowledge stock, its motivational disposition to share knowledge, and the richness of transmission channels; and (ii) knowledge inflows into a subsidiary would be positively associated with richness of transmission channels, motivational disposition to acquire knowledge, and the capacity to absorb the incoming knowledge. These predictions were tested empirically with data from 374 subsidiaries within 75 MNCs headquartered in the U.S., Europe, and Japan. Except for our predictions regarding the impact of source unit's motivational disposition on knowledge outflows, the data provide either full or partial support to all of the other elements of our theoretical framework. Copyright © 2000 John Wiley & Sons, Ltd.

https://www.jstor.org/stable/pdfplus/3094239.pdf

Knowledge flows within multinational corporations

Corporate entrepreneurship seems to many entrepreneurship scholars a contradiction in terms. This paper represents an attempt to bridge that gap. This is done by, first, reviewing the literature on entrepreneurship, trying to summarize it in a few major themes. Second, a view of entrepreneurship is proposed that facilitates the application of the previous findings to the field of corporate entrepreneurship. Finally, a series of propositions are developed, as instances of the kind of research that can be pursued by following the proposed approach.

A Paradigm of Entrepreneurship: Entrepreneurial Management *

In parallel with a theoretical acceptance of the importance of the laws of competition to formulate strategy, the realization is growing that cooperative behavior among firms is at the root of many success stories in today's management. This situation calls for an effort to develop a theoretical framework to study both aspects of firm behavior (cooperative and competitive) as compatible, complementary aspects of a unique reality. Indeed, the cooperative relationships of a firm can be the source of its competitive strength.

This paper develops the concept of strategic network, as a tool to understand those cooperative relationships and their role in the strategy of the firm. There are three main tasks of the paper: first, to show that strategic networks are but a ‘mode of organization’; second, to study the economic conditions of existence of a network; finally, to analyze the conditions of existence of a network from the point of view of its internal consistency. In a final section some of the most obvious strategic implications of the framework are outlined.

On strategic networks

We discuss and explore the effects of internationalization, an entrepreneurial strategy employed by small and medium-sized enterprises (SMEs), on firm performance. Using concepts derived from the international business and entrepreneurship literatures, we develop four hypotheses that relate the extent of foreign direct investment (FDI) and exporting activity, and the relative use of alliances, to the corporate performance of internationalizing SMEs. Using a sample of 164 Japanese SMEs to test these hypotheses, we find that the positive impact of internationalization on performance extends primarily from the extent of a firm's FDI activity. We also find evidence consistent with the perspective that firms face a liability of foreignness. When firms first begin FDI activity, profitability declines, but greater levels of FDI are associated with higher performance. Exporting moderates the relationship FDI has with performance, as pursuing a strategy of high exporting concurrent with high FDI is less profitable than one that involves lower levels of exports when FDI levels are high. Finally, we find that alliances with partners with local knowledge can be an effective strategy to overcome the deficiencies SMEs face in resources and capabilities, when they expand into international markets. Copyright © 2001 John Wiley & Sons, Ltd.

The internationalization and performance of SMEs

Drawing on a social network perspective of organizational coordination, this paper investigates the effectiveness of coordination mechanisms on knowledge sharing in intraorganizational networks that consist of both collaborative and competitive ties among organizational units. Internal knowledge sharing within a multiunit organization requires formal hierarchical structure and informal lateral relations as coordination mechanisms. Using sociometric techniques, this paper analyzes how formal hierarchical structure and informal lateral relations influence knowledge sharing and how interunit competition moderates the association between such coordination mechanisms and knowledge sharing in a large, multiunit company. Results show that formal hierarchical structure, in the form of centralization, has a significant negative effect on knowledge sharing, and informal lateral relations, in the form of social interaction, have a significant positive effect on knowledge sharing among units that compete with each other for market share, but not among units that compete with each other for internal resources.

http://www.personal.psu.edu/faculty/w/p/wpt1/Social%20Structure%20of%20Coopetition%20Within%20a%20Multiunit%20Organization%20Coordination,%20Competition,%20and%20Intraorganizational%20Knowledge%20Sharing.pdf

Social Structure of Coopetition Within a Multiunit Organization: Coordination, Competition, and Intraorganizational Knowledge Sharing

The mechanisms of coordination used by Multinational Corporations (MNCs) are studied, through an exhaustive literature review. A pattern of evolution is found: as time has passed, researchers have concentrated more on subtler and informal mechanisms, abandoning their unidimensional focus on structural issues. It is suggested that the increase in the study of those mechanisms may be due, among other reasons, to the fact that MNCs are indeed making more use of them. That could be explained by changes in the international competitive environment, which force firms to adjust their strategies, requiring ever more multidimensional coordination.

https://papers.ssrn.com/sol3/Delivery.cfm/palgrave_jibs_8490370.pdf?abstractid=1800521&mirid=2

The Evolution of Research on Coordination Mechanisms in Multinational Corporations

Entrepreneurship and growth: the strategic use of external resources

The mechanisms of coordination used by Multinational Corporations (MNCs) are studied, through an exhaustive literature review. A pattern of evolution is found: as time has passed, researchers have concentrated more on subtler and informal mechanisms, abandoning their unidimensional focus on structural issues. It is suggested that the increase in the study of those mechanisms may be due, among other reasons, to the fact that MNCs are indeed making more use of them. That could be explained by changes in the inter- national competitive environment, which force firms to adjust their strategies, requiring ever more multidimensional coordination.

J. Carlos Jarillo

Papers

The Evolution of Research on Coordination Mechanisms in Multinational Corporations

Entrepreneurship and growth: the strategic use of external resources

Mechanisms in multinational corporations