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Addressing dual embeddedness: The roles of absorptive capacity and appropriability mechanisms in subsidiary performance
Luleå University of Technology.
Luleå University of Technology / University of Vaasa, Finland.
Södertörn University, School of Social Sciences, Business Studies.
Luleå University of Technology.
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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
2017.
Keyword [en]
Dual embeddedness, Absorptive capacity, Appropriability mechanisms, Emerging countries
National Category
Business Administration
Identifiers
URN: urn:nbn:se:sh:diva-32988DOI: 10.1016/j.indmarman.2017.06.002OAI: oai:DiVA.org:sh-32988DiVA: diva2:1117907
Available from: 2017-06-29 Created: 2017-06-29 Last updated: 2017-06-29Bibliographically approved

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Oghazi, Pejvak

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