An Empirical Investigation into a Subsidiary Absorptive Capacity Process Model

Stephanie Schleimer, Torben Pedersen

    Research output: Chapter in Book/Report/Conference proceedingConference abstract in proceedingsResearchpeer-review


    literature. However, it remains to be surrounded by considerable ambiguity in terms of its actual meaning, the drivers influencing its evolution, and its impact on related outcomes. In this study, we take on some of the major criticisms and recent suggestions from the absorptive capacity literature and empirically test a process model of absorptive capacity. The setting of our empirical study is 213 subsidiaries of multinational enterprises and the focus is on the capacity of these subsidiaries to successfully absorb best practices in marketing strategy
    from their headquarters. This setting allows us to explore the process model in its entirety, including different drivers of subsidiary absorptive capacity (organizational mechanisms and contextual drivers), the three original
    dimensions of absorptive capacity (recognition, assimilation, application), and related outcomes (implementation and internalization of the best practice). The study’s findings reveal that managers have discretion in promoting
    absorptive capacity through the application of specific organizational mechanism and that the impact of contextual drivers on subsidiary absorptive capacity is not direct, but mediated by these organizational mechanisms.
    Original languageEnglish
    Title of host publicationProceedings of the 53rd Annual Meeting of the Academy of International Business
    EditorsShige Makingo , Tunga Kiyak
    Place of PublicationEast Lansing, MI
    PublisherAcademy of International Business
    Publication date2011
    Publication statusPublished - 2011
    EventAIB 2011 Annual Meeting: International Business for Sustainable World Development - Nagoya, Japan
    Duration: 24 Jun 201128 Jun 2011
    Conference number: 53


    ConferenceAIB 2011 Annual Meeting
    Internet address
    SeriesAcademy of International Business. Annual Meeting. Proceedings

    Cite this