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Showing papers on "Embeddedness published in 2018"


Journal ArticleDOI
TL;DR: In this paper, the concept of differentiated embedding is proposed to explore how migrants negotiate attachment and belonging as dynamic temporal, spatial and relational processes, and examine why participants extended their stay and how their decisions were shaped by interpersonal relationships locally and transnationally.
Abstract: Developing on Granovetter’s classic work on embeddedness in systems of social relations, this paper proposes the concept of ‘differentiated embedding’ to explore how migrants negotiate attachment and belonging as dynamic temporal, spatial and relational processes. When Poland joined the EU in May 2004, the large flow of migrants to the UK was perceived by many migration researchers as heralding a new form of transient mobility associated with short-term, temporary and circular migration, and high levels of transnationalism. Relatively little attention was paid to how these migrants were integrating in local contexts. Based on 20 in-depth interviews and network mapping with Polish migrants, resident in London for a decade, I examine why participants extended their stay and how their decisions were shaped by interpersonal relationships locally and transnationally. London as a ‘superdiverse’, global city offers place-specific opportunities for building networks and developing processes of embedding. ...

179 citations


Journal ArticleDOI
TL;DR: Results show that internal embeddedness directly and positively influences the degree of subsidiaries’ knowledge transfer, whereas external embeddedness does not.
Abstract: This paper aims to investigate the relationship between the level of subsidiaries’ internal and external relational embeddedness and the degree of subsidiaries’ knowledge transfer. More specifically, the aim is to explore dual embeddedness of subsidiaries involved in the knowledge transfer process within multinational corporations’ (MNCs) network.,The authors empirically analyse 165 European subsidiaries to demonstrate the crucial role of dual relational embeddedness in the transfer of knowledge within MNCs. Data were collected via a close-ended questionnaire and processed through an ordinary least squares regression model.,Results show that internal embeddedness directly and positively influences the degree of subsidiaries’ knowledge transfer, whereas external embeddedness does not. Notwithstanding, a higher level of both types of embeddedness – known as dual embeddedness – generates multiplicative and positive effects on the degree of subsidiaries’ knowledge transfer.,Best practices and relevant knowledge follow a reverse transfer of knowledge from the subsidiaries to the internal MNC network that is facilitated by the relational embeddedness of subsidiaries. This has resulted in developing a dual embeddedness, which introduces new routines and scripts, as well as more relational links.,The research emphasises the relevance of the knowledge transfer process in multiple directions, evoking the central role of dual-embedded subsidiaries.

117 citations


Journal ArticleDOI
TL;DR: In this article, the mediating effect of job embeddedness on the relationships between high-performance work practices, trust in supervisor and turnover intentions of frontline employees in the hospitality industry was investigated.
Abstract: Purpose The purpose of this study is to investigate the mediating effect of job embeddedness on the relationships between high-performance work practices, trust in supervisor and turnover intentions of frontline employees in the hospitality industry. Design/methodology/approach Data was collected from 343 frontline employees working in four and five-star hotels of Thailand. Partial Least Squares was used for analysis since it is considered as the best method to analyze the data containing both reflective and formative indicators. Findings Results suggest that job embeddedness fully mediates the effects of high-performance work practices and trust in supervisor on turnover intentions and turnover intention positively affects the actual voluntary turnover. Practical implications The study confirms that high performance work practices (empowerment, training, and rewards) and trust in supervisor affect turnover intentions through on-the-job embeddedness. Hence, high-performance work practices embed hotel empl...

98 citations


Journal ArticleDOI
TL;DR: In this paper, the authors highlight the importance of regions pursuing strategies that allow them to capture a sustainable part of the value they help create and co-create with other entities, such as multinational firms and other organisations.
Abstract: This paper critically assesses recent place-based approaches to industrial and regional policy epitomised in the EU’s 2020 ‘smart specialisation’ programme. It suggests that these are a move in the right direction in so far as they acknowledge ‘place’ as a key, constituent part of policymaking. Drawing upon examples from across the world, we emphasise the importance of regions pursuing strategies that allow them to capture—in a sustainable way—a part of the value they help create and co-create with other entities, such as multinational firms and other organisations. This involves policymakers acting as public entrepreneurs, devising and implementing strategies, structures and policies to enable the regional ecosystem and its constituent parts to capture value sustainably. In addition to the extant focus on linkages and embeddedness, a key aspect of this involves the adoption of regional value capture and positioning strategies.

79 citations


Journal ArticleDOI
TL;DR: In this article, the authors define embeddedness as a psychological construct that influences individuals to stay, and draw on conservation of resources theory to develop and test a model of the influence of contextual social support resources on both organizational and community forms of embeddedness.
Abstract: Summary Defining embeddedness as a psychological construct that influences individuals to stay, we draw on conservation of resources theory to develop and test a model of the influence of contextual social support resources on both organizational and community forms of embeddedness. In addition to the direct relationship between support and embeddedness, we also assess the mediating influence of organizational and community psychological safety and the moderating impact of need to belong. Using a multisource sample of employees and coworkers (N = 165), we found support for most of the hypotheses. Social support resources emanating from the organization and the community were positively associated with embeddedness in each domain, and psychological safety mediated these relationships. We also found that need to belong was an important boundary condition in the determination of organizational embeddedness. We discuss the theoretical contributions and practical implications of our findings.

78 citations


Journal ArticleDOI
TL;DR: In this article, the authors investigated the relevance of the mixed embeddedness thesis to businesses with a more transnational mode of operation and found that the extent to which new transnational opportunities can be exploited, however, depends on access to the necessary local and transnational forms of capital.
Abstract: Purpose The purpose of this paper is to investigate the relevance of the mixed embeddedness thesis (Kloosterman, 2010; Rath and Kloosterman, 2002) to businesses with a more transnational mode of operation. Design/methodology/approach Interviews with the owner managers of a sample 24 Vietnamese businesses in London were undertaken to develop an understanding of how micro (individual resources: social, financial and cultural/human capital, and history of migration), meso (local, regional and national markets) and macro (politico-institutional) factors in the UK and overseas influenced business development. Findings The findings illustrate how business development is influenced not just by the interaction of the local (UK) opportunity structure and the entrepreneur’s resources, as suggested by the mixed embeddedness thesis, but also by institutional regimes, economies and markets in key countries of the diaspora, and the interaction of these. The extent to which new transnational opportunities can be exploited, however, depends on access to the necessary local and transnational forms of capital. Practical implications The empirical evidence presented is used to present a re-working of the mixed embeddedness thesis to provide a framework for understanding the drivers of transnational entrepreneurship. Originality/value The paper presents new empirical knowledge of transnational activity amongst the UK Vietnamese business community – a little known refugee community. Conceptually, the paper offers a theoretical development of the mixed embeddedness thesis to enable it to provide an explanation of transnational entrepreneurship amongst new migrant communities.

75 citations


Journal ArticleDOI
TL;DR: Wang et al. as mentioned in this paper investigated how government ownership and political connections affect Chinese listed firms' likelihood of issuing CSR reports, as well as the underlying CSR performance and its relation to corporate financial performance.

75 citations


Journal ArticleDOI
TL;DR: It is found that firm age weakens the growth advantages of spousal teams over sibling teams and that industry experience heterogeneity within the entrepreneurial team reinforces these growth advantages.
Abstract: Integrating relational embeddedness arguments with Penrosean growth theory, we compare the growth of firms run by spousal entrepreneurs with firms run by sibling entrepreneurs. We theorize that trust, identification, and mutual obligations—the three facets of relational embeddedness—are more pronounced in spousal teams than in sibling teams, which provides spousal teams with advantages over sibling teams in generating firm growth. Probing a sample of all private firms in Sweden over a three-year period, we find support for this conjecture. Exploring boundary conditions to this baseline relationship, we also find that firm age weakens the growth advantages of spousal teams over sibling teams and that industry experience heterogeneity within the entrepreneurial team reinforces these growth advantages. These results provide important contributions for research on firm growth, the social embeddedness of firms, entrepreneurship, and family business.

74 citations


Posted Content
TL;DR: It is demonstrated that Twitter activity drives a disproportionate increase in fundraising for prosocially oriented crowdfunding campaigns when posting users’ networks exhibit greater embeddedness, and suggests that when a transmitter’s message is prosocial or cause-oriented, embeddedness will play a stronger role in determining influence.
Abstract: This paper examines how i) a crowdfunding campaign's pro-sociality (the production of a public versus private good), ii) the social network structure (embeddedness) among individuals advocating for the campaign on social media, and iii) the volume of social media activity around a campaign, jointly determine fundraising from the crowd. Integrating the emerging literature on social media and crowdfunding with the literature on social networks and public goods, we theorize that pro-socially, public-oriented crowdfunding campaigns will benefit disproportionately from social media activity when advocates' social media networks exhibit greater levels of embeddedness. Drawing on a panel dataset that combines campaign fundraising activity associated with more than 1,000 campaigns on Kickstarter, with campaign-related social media activity on Twitter, we construct network-level measures of embeddedness between and amongst individuals initiating the latter, in terms of transitivity and topological overlap. We demonstrate that Twitter activity drives a disproportionate increase in fundraising for pro-socially oriented crowdfunding campaigns when posting users' networks exhibit greater embeddedness. We discuss the theoretical implications of our findings, highlighting how our work extends prior research on the role of embeddedness in peer influence by demonstrating the joint roles of message features and network structure in the peer influence process. Our work suggests that when a transmitter's message is pro-social or cause-oriented, embeddedness will play a stronger role in determining influence. We also discuss the broader theoretical implications for the literatures on social media, crowdfunding, crowdsourcing and private contributions to public goods. Finally, we highlight the practical implications for marketers, campaign organizers, and crowdfunding platform operators.

68 citations


Journal ArticleDOI
TL;DR: This article found that student proclivity to start a venture can be affected not only by the university environment where they are exposed to entrepreneurship, but also by perceptions of how desirable entrepreneurial businesses are.
Abstract: Student proclivity to start a venture can be affected not only by the university environment where they are exposed to entrepreneurship, but also by perceptions of how desirable entrepreneurial beh...

66 citations


Journal ArticleDOI
TL;DR: In this article, the authors examined the effects of both job embeddedness and shocks on the turnover intention of self-initiated expatriates and found that on-the-job embeddedness played a key role in predicting turnover intentions.

Journal ArticleDOI
TL;DR: In this paper, the authors draw on a social network perspective to explain multinational enterprises' propensity to distribute their operations unevenly across various regions of the world, i.e., whether they concentrate on their home region or expand beyond it.
Abstract: We draw on a social network perspective to explain multinational enterprises’ (MNEs) propensity to distribute their operations unevenly across various regions of the world. We focus on how the positioning of MNEs in their domestic network of strategic alliances affects their geographic scope, i.e., whether they concentrate on their home region or expand beyond it. We theorize that embeddedness in alliance networks constitutes a double-edged sword to the geographic scope of MNEs. Strong embeddedness in domestic alliance networks drives the development of location-bound firm-specific advantages (FSAs), which may narrow down MNEs’ geographic scope. In contrast, moderate embeddedness leads to more non-location-bound FSAs, which reduce liability of foreignness, and hence motivate MNEs to widen their geographical scope. We thus predict a non-linear relationship between domestic alliance network embeddedness and MNE geographic scope. Furthermore, the impact of the domestic alliance network on MNE geographic scope hinges on the organizational ability to efficiently and effectively absorb resources stemming from the network. We test our hypotheses using FDI data from 302 US MNEs in the information and communication technology industry for the period of 2001–2008, and generally find robust support for the hypothesized relationships.

Journal ArticleDOI
TL;DR: The Symposium on Mixed Embedding in Migrant Entrepreneurship as discussed by the authors discussed the development of mixed embeddedness, reflecting on its position within the international field of migrant entrepreneurship research, and highlighting its key elements.
Abstract: This essay concludes the Symposium on the mixed embeddedness approach to migrant entrepreneurship by briefly outlining the development of mixed embeddedness, reflecting on its position within the international field of migrant entrepreneurship research, and by highlighting its key elements. We first discuss how the mixed embeddedness approach came into being. Thereafter we highlight the basic components of the approach and we argue why such an approach should be preferred to other, more mono-causal approaches. Our contribution concludes by pointing to the adjustments that the approach has undergone since its introduction in the late 1990s.

Journal ArticleDOI
TL;DR: In this article, the authors investigate determinants of global knowledge sourcing of overseas R&D subsidiaries, shedding light on vertical cross-border embeddedness within firms, and examine the extent to which different types of internal vertical embeddedness (administrative versus knowledge) facilitate knowledge sourcing.
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.

Journal ArticleDOI
TL;DR: This article conducted a review of the literature on entrepreneurship by females with an ethnic minority background based on immigration to a new country and focus on entrepreneurial resources, entrepreneurial strategies, outcomes, and context.

Journal ArticleDOI
TL;DR: While locally embedded bureaucrats may be more willing and able to enhance public goods provisioning in the places that they serve, they may also be more likely to be captured by elite interests as discussed by the authors.
Abstract: While locally embedded bureaucrats may be more willing and able to enhance public goods provisioning in the places that they serve, they may also be more likely to be captured by elite interests. W...

Journal ArticleDOI
TL;DR: In this article, the authors explored the development of local small businesses in rural peripheral regions compared to businesses in urban settings, and the impact of the local business' location and level of embeddedness on its growth, measured by the number of employees.

Journal ArticleDOI
TL;DR: In this paper, the authors investigated the culture-innovation relationship in a European context, as well as the mediating role of the national-level trust in this connection, and found that innovation at the country level is positively correlated with the level of societal trust and with three cultural value dimensions: "Autonomy versus embeddedness", "Egalitarianism versus Hierarchy", and "Harmony versus Mastery".
Abstract: Cultural values and social capital are important parts of the context that determines countries’ innovation performance (and, hence, economic development). This paper investigates the culture–innovation relationship in a European context, as well as the mediating role of the national-level trust in this connection. Data are used to test the hypotheses that a country’s innovation performance is influenced by its cultural value emphases and societal trust, and that the culture–innovation relationship is mediated by societal trust. Based on data from the Global Innovation Index and the European Social Survey covering 27 European countries, we find that innovation at the country level is positively correlated with the level of societal trust and with three cultural value dimensions: “Autonomy versus Embeddedness”, “Egalitarianism versus Hierarchy”, and “Harmony versus Mastery”. A multivariate SEM analysis reveals that when “Autonomy versus Embeddedness” is controlled, the two other cultural value dimensions are no longer significant. Further, a SEM path analysis confirms that the relationship between cultural values and innovation performances is completely mediated through the level of trust in a society. Overall, “Autonomy versus Embeddedness” has a stronger total effect than societal trust on a country’s innovation performance, but most of this effect is indirect, mediated through societal trust. Implications of our findings for the corporate level (i.e., entrepreneurs and managers) as well as for the institutional settings (i.e., policy makers) are discussed. It is suggested that for successful innovation to blossom, the actors on both levels should aim at strengthening the cultural emphasis on individual autonomy, institutional integrity and mutual trust.

Journal ArticleDOI
TL;DR: In this paper, the authors investigated the relationship between market turbulence and firms' sustainable behavior, in the context of sustainability-related institutional adversity, and found that market turbulence enhances sustainable firm behavior, through the development of strong network relationships.
Abstract: Drawing from research on strategic choice, this study investigates the relationship between market turbulence and firms’ sustainable behavior, in the context of sustainability-related institutional adversity. It argues that the relationship between market turbulence and sustainability is mediated by network embeddedness, and this mediating role in turn is moderated by a firm’s innovative orientation. Data collected from a sample of Ontario restaurants inform predictions about firms’ propensity to adopt local wines in their portfolios, despite the limited market and normative support that these wines receive compared with imported wines. The study shows that market turbulence enhances sustainable firm behavior, through the development of strong network relationships. Furthermore, the mediating effect of network embeddedness is particularly salient among firms that exhibit a stronger innovative orientation. These findings reveal how and when turbulent market conditions can contribute to a firm’s sustainable behaviors in the presence of limited institutional support for such behaviors.

Journal ArticleDOI
TL;DR: In this paper, the authors examined the relationship between women entrepreneurs' firm performance and two dimensions (enrichment and interference) of the business-family interface (BFI) in the moderating context of the level of economic development in two emerging countries - Morocco and Turkey.
Abstract: Purpose:The purpose of this paper is to examine the relationships between women entrepreneurs’ firm performance and two dimensions (enrichment and interference) of the business-family interface (BFI) in the moderating context of the level of economic development in two emerging countries – Morocco and Turkey. The enrichment perspective was operationalized as family instrumental (financial) and affective (moral) support, while interference was operationalized as gender-related personal problems.Design/methodology/approach:The study drew upon the work-family interface (WFI) theory from the family embeddedness perspective in the context of institutional economics. In Morocco, a purposive sample of 116 women entrepreneurs completed a self-administered questionnaire using field collection, mail, and phone surveying methods. In Turkey, 147 women entrepreneurs completed the questionnaire online and through personal contacts in business organizations.FindingsThe findings indicated a positive relationship of family financial support with business performance of female entrepreneurs in Morocco, a less economically advanced country. However, family moral support is related to better firm performance in Turkey, a more advanced economy. Gender-related personal problems of women entrepreneurs appear to hamper their business performance in Turkey; while in Morocco, the performance of women entrepreneurs seems to improve in the face of such impediments.Practical implications:The results provide initial evidence that female entrepreneurs benefit from the linkages of family-to-business enrichment in different ways, depending on the country’s level of economic development. In less economically developed countries, women entrepreneurs benefit more from instrumental rather than affective components of the enrichment dimension of the BFI. Conversely, in more economically advanced countries, female entrepreneurs benefit more from affective rather than the instrumental elements of this dimension. Likewise, the components of the interference dimension of the BFI affect female entrepreneurs differently depending on the economic development of the countries. Women in the less-developed country of Morocco are less impeded by their personal problems compared to their counterparts in Turkey, a more developed economy. Actually, Moroccan women entrepreneurs improved their business performance when facing obstacles, most likely due to their increased inner strength and resilience acquired when battling adversarial institutional conditions.Originality/value:The present study makes three unique contributions to the entrepreneurship literature. First, the study links the two BFI dimensions (enrichment and interference) to firm performance with an exclusive focus on female business owners. Second, within the construct of enrichment, the study employs both family instrumental and emotional support. Third, the study shows that the country’s level of economic development moderates the relationships between the BFI dimensions and firm performance.

Journal ArticleDOI
TL;DR: In this article, the authors analyse how actors involved in the governance of water, energy and food systems are embedded in social networks, and discuss how that embeddedness shapes collaboration and coordination processes that are relevant for addressing interconnected sustainability challenges.

Journal ArticleDOI
TL;DR: In this article, the authors investigate how family embeddedness conditions combine with the goals and attributes of individuals with a family business background to engender to two patterns of entrepreneurship: succession in the family business and foundation of a new venture.
Abstract: This study aims to determine how family embeddedness conditions combine with the goals and attributes of individuals with a family business background to engender to two patterns of entrepreneurship: succession in the family business and foundation of a new venture. Our empirical study is conducted using 169 cases of entrepreneurs operating in Italy. Inductively building on the configurations derived from the analysis, we suggest a series of theoretical propositions focusing on family embeddedness, individual attributes, and entrepreneurial paths of next-generation family business members.

Journal ArticleDOI
TL;DR: In this paper, the authors apply classical concepts of organizational structure and extend them to contemporary challenges of diversity to explore why unequal opportunity structures persist in an organization and why unequal opportunities persist in organizations.
Abstract: This article applies classical concepts of organizational structure and extends them to contemporary challenges of diversity to explore why unequal opportunity structures persist in an organization...

Journal ArticleDOI
TL;DR: In this paper, an analysis of community-run Energy Cafes in the United Kingdom is presented, showing that while present-day grassroots innovations appear less explicitly political than their predecessors, they can still represent a form of political participation.
Abstract: Community action has an increasingly prominent role in the debates surrounding transitions to sustainability. Initiatives such as community energy projects, community gardens, local food networks and car sharing clubs provide new spaces for sustainable consumption, and combinations of technological and social innovations. These initiatives, which are often driven by social good rather than by pure monetary motives, have been conceptualised as grassroots innovations. Previous research in grassroots innovations has largely focused on conceptualising such initiatives and analysing their potential for replication and diffusion, there has been less research in the politics involved in these initiatives. We examine grassroots innovations as forms of political engagement that is different from the 1970s’ alternative technology movements. Through an analysis of community-run Energy Cafes in the United Kingdom, we argue that while present-day grassroots innovations appear less explicitly political than their predecessors, they can still represent a form of political participation. Through the analytical lens of material politics, we investigate how Energy Cafes engage in diverse – explicit and implicit, more or less conscious – forms of political engagement. In particular, their work to ‘demystify’ clients’ energy bills can unravel into various forms of advocacy and engagement with energy technologies and practices in the home. Some Energy Cafe practices also make space for a needs-driven approach that acknowledges the embeddedness of energy in the household and wider society.

Journal ArticleDOI
TL;DR: It is proposed that these two aspects of occupational embeddedness must be analyzed together with occupational control processes to explain how integration unfolds in knowledge-based settings in ways that organizational control processes are ill-equipped to manage.
Abstract: We examine how different occupational communities that are embedded in organizations exercise control processes to achieve emergent coordination as they create complex products together. We compare two types of organizations, equipment manufacturing and film production, and find that although occupational control was important for emergent coordination in both settings, this relationship varied according to two aspects of occupational embeddedness: organizational acknowledgment of occupational control and occupational interdependence. In the equipment manufacturing setting, occupational control was latent: the communities visibly conformed to organizational control processes while exercising occupational control behind the scenes to coordinate emergently. In the film setting, the organization granted the occupational community significant latitude over its tasks, which enabled members to coordinate emergently to solve problems the majority of the time. We propose that these two aspects of occupational embeddedness must be analyzed together with occupational control processes to explain how integration unfolds in knowledge-based settings in ways that organizational control processes are ill-equipped to manage.

Journal ArticleDOI
TL;DR: In this article, the authors investigated the factors that influenced the entrepreneurial start-up businesses among Chinese immigrants who had been granted residency under three different immigration policies in the US, and found that the factors influenced the start up businesses of Chinese immigrants.
Abstract: This article investigates the factors that influenced the entrepreneurial start-up businesses among Chinese immigrants who had been granted residency under three different immigration policies in A

Journal ArticleDOI
TL;DR: In this paper, the authors investigate how entrepreneurs of biotech enterprises embed in domestic and international networks so as to internationalize, and present a contextual framework of embeddedness of interna...
Abstract: This study investigates how entrepreneurs of biotech enterprises embed in domestic and international networks so as to internationalize. We advance a contextual framework of embeddedness of interna ...

Journal ArticleDOI
TL;DR: In this article, the authors used a detailed and contextualized knowledge and analysis of the developing care farming sector in the Netherlands to increase their understanding of the role of agency and challenges and successful strategies of actors associated with interactions across system boundaries.

Journal ArticleDOI
TL;DR: In this article, the authors estimate the space-time impacts of the embeddedness in R&D networks on regional knowledge production using a dynamic spatial panel data model with non-linear effects for 229 European NUTS 2 regions in the period 1998-2010.
Abstract: In this study we estimate space-time impacts of the embeddedness in R&D networks on regional knowledge production using a dynamic spatial panel data model with non-linear effects for 229 European NUTS 2 regions in the period 1998–2010. Embeddedness refers to the positioning in networks where nodes represent regions that are linked by joint R&D projects funded by EU Framework Programmes. We find evidence that increasing embeddedness in EU funded R&D networks leads to positive immediate impacts on regional knowledge production, and that regions with lower levels of own knowledge endowments more likely exploit the positive effects. However, the long-term impacts of a region's embeddedness in these R&D networks are comparatively small.

Journal ArticleDOI
TL;DR: In this article, the authors investigate how subsidiaries exploit the knowledge flows embedded in internal and external networks and support their development in terms of scope (breadth of functional operations) and competence (ability to perform specific activities).
Abstract: We investigate how subsidiaries exploit the knowledge flows embedded in internal and external networks and support their development in terms of scope (breadth of functional operations) and competence (ability to perform specific activities). We argue that individual subsidiaries have different organizational learning processes, which would influence the way subsidiaries evolve and manage multiple sources of knowledge and adapt their knowledge structure and routines systematically for subsidiary-wide development. Our analysis of 81 foreign-owned subsidiaries in China shows that subsidiary competence is enhanced by the knowledge arising from MNC networks whereas subsidiary scope depends on the knowledge embedded in the host environments. Moreover, organizational learning affects the way knowledge adapted from internal embeddedness but not external embeddedness. These findings imply that foreign subsidiaries must effectively cope with increased flows of distant knowledge within MNC networks while maintaining their location-specific advantage. The different outcomes of subsidiary development add a nuanced understanding of the relationship between dual embeddedness and subsidiary development.