Subsidiary Linkage Patterns: Learning Prospects and Spillover Risks

Alessandra Perri, Ulf Andersson, Phillip C. Nell, Grazia D. Santangelo

    Research output: Contribution to conferencePaperResearchpeer-review

    Abstract

    This paper investigates local vertical linkages of foreign subsidiaries and the dual role of such linkages as conduits for learning as well as potential channels for spillovers to competitors. On the basis of data from 97 subsidiaries, we analyze the quality of such linkages under varying levels of competition and subsidiary capabilities. Our theoretical development and the results from the analysis document a far more complex and dynamic relationship between levels of competition and MNCs’ local participation in knowledge intensive activities, i.e. learning and spillovers, than previous studies do. We find a curvilinear relationship between the extent of competitive pressure and the quality of local linkages confirming our argument of a trade-off between learning prospects and spillover risks. Furthermore, the level of subsidiary capabilities moderates this relationship.
    Original languageEnglish
    Publication date2012
    Number of pages44
    Publication statusPublished - 2012
    EventAIB 2012 Annual Meeting: Rethinking the Roles of Business, Government and NGOs in the Global Economy - George Washington University and University of Maryland, Washington, United States
    Duration: 30 Jun 20123 Jul 2012
    Conference number: 54
    http://aib.msu.edu/events/2012/

    Conference

    ConferenceAIB 2012 Annual Meeting
    Number54
    LocationGeorge Washington University and University of Maryland
    CountryUnited States
    CityWashington
    Period30/06/201203/07/2012
    Internet address

    Bibliographical note

    CBS Library does not have access to the material

    Cite this

    Perri, A., Andersson, U., Nell, P. C., & Santangelo, G. D. (2012). Subsidiary Linkage Patterns: Learning Prospects and Spillover Risks. Paper presented at AIB 2012 Annual Meeting, Washington, United States.
    Perri, Alessandra ; Andersson, Ulf ; Nell, Phillip C. ; Santangelo, Grazia D. / Subsidiary Linkage Patterns : Learning Prospects and Spillover Risks. Paper presented at AIB 2012 Annual Meeting, Washington, United States.44 p.
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    abstract = "This paper investigates local vertical linkages of foreign subsidiaries and the dual role of such linkages as conduits for learning as well as potential channels for spillovers to competitors. On the basis of data from 97 subsidiaries, we analyze the quality of such linkages under varying levels of competition and subsidiary capabilities. Our theoretical development and the results from the analysis document a far more complex and dynamic relationship between levels of competition and MNCs’ local participation in knowledge intensive activities, i.e. learning and spillovers, than previous studies do. We find a curvilinear relationship between the extent of competitive pressure and the quality of local linkages confirming our argument of a trade-off between learning prospects and spillover risks. Furthermore, the level of subsidiary capabilities moderates this relationship.",
    keywords = "Quality of local vertical linkages, Competitive pressure, Subsidiary capabilities, Learning, Spillovers",
    author = "Alessandra Perri and Ulf Andersson and Nell, {Phillip C.} and Santangelo, {Grazia D.}",
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    Perri, A, Andersson, U, Nell, PC & Santangelo, GD 2012, 'Subsidiary Linkage Patterns: Learning Prospects and Spillover Risks' Paper presented at, Washington, United States, 30/06/2012 - 03/07/2012, .

    Subsidiary Linkage Patterns : Learning Prospects and Spillover Risks. / Perri, Alessandra ; Andersson, Ulf; Nell, Phillip C.; Santangelo, Grazia D.

    2012. Paper presented at AIB 2012 Annual Meeting, Washington, United States.

    Research output: Contribution to conferencePaperResearchpeer-review

    TY - CONF

    T1 - Subsidiary Linkage Patterns

    T2 - Learning Prospects and Spillover Risks

    AU - Perri, Alessandra

    AU - Andersson, Ulf

    AU - Nell, Phillip C.

    AU - Santangelo, Grazia D.

    N1 - CBS Library does not have access to the material

    PY - 2012

    Y1 - 2012

    N2 - This paper investigates local vertical linkages of foreign subsidiaries and the dual role of such linkages as conduits for learning as well as potential channels for spillovers to competitors. On the basis of data from 97 subsidiaries, we analyze the quality of such linkages under varying levels of competition and subsidiary capabilities. Our theoretical development and the results from the analysis document a far more complex and dynamic relationship between levels of competition and MNCs’ local participation in knowledge intensive activities, i.e. learning and spillovers, than previous studies do. We find a curvilinear relationship between the extent of competitive pressure and the quality of local linkages confirming our argument of a trade-off between learning prospects and spillover risks. Furthermore, the level of subsidiary capabilities moderates this relationship.

    AB - This paper investigates local vertical linkages of foreign subsidiaries and the dual role of such linkages as conduits for learning as well as potential channels for spillovers to competitors. On the basis of data from 97 subsidiaries, we analyze the quality of such linkages under varying levels of competition and subsidiary capabilities. Our theoretical development and the results from the analysis document a far more complex and dynamic relationship between levels of competition and MNCs’ local participation in knowledge intensive activities, i.e. learning and spillovers, than previous studies do. We find a curvilinear relationship between the extent of competitive pressure and the quality of local linkages confirming our argument of a trade-off between learning prospects and spillover risks. Furthermore, the level of subsidiary capabilities moderates this relationship.

    KW - Quality of local vertical linkages

    KW - Competitive pressure

    KW - Subsidiary capabilities

    KW - Learning

    KW - Spillovers

    M3 - Paper

    ER -

    Perri A, Andersson U, Nell PC, Santangelo GD. Subsidiary Linkage Patterns: Learning Prospects and Spillover Risks. 2012. Paper presented at AIB 2012 Annual Meeting, Washington, United States.