The Effects of MNC Parent Effort and Social Structure on Subsidiary Absorptive Capacity

Stephanie Christine Schleimer, Torben Pedersen

    Research output: Contribution to journalJournal articleResearchpeer-review

    Abstract

    Although the literature provides ample evidence that the global transfer and local implementation of knowledge represents a key advantage for multinational corporations (MNCs), we lack comparable understanding as to whether knowledge-creating MNC parents can actively expand the absorptive capacity of their subsidiaries. Using a teacher–student lens, this study examines the combined impact of specific structural mechanisms and motivational processes by MNC parents on the ability of 216 subsidiaries to absorb parent-initiated marketing strategies. The findings reveal that MNC parents can indeed cultivate subsidiaries’ ability to appropriate marketing knowledge through a combination of adopting specific social structures and investing in particular efforts. However, the effect of social structure on subsidiary absorptive capacity is indirect, and accounted for by the parents’ intensity of effort.
    Original languageEnglish
    JournalJournal of International Business Studies
    Volume45
    Issue number3
    Pages (from-to)303-320
    Number of pages18
    ISSN0047-2506
    DOIs
    Publication statusPublished - Apr 2014

    Cite this

    @article{d423868ab95d4babbac0b75ba02bc527,
    title = "The Effects of MNC Parent Effort and Social Structure on Subsidiary Absorptive Capacity",
    abstract = "Although the literature provides ample evidence that the global transfer and local implementation of knowledge represents a key advantage for multinational corporations (MNCs), we lack comparable understanding as to whether knowledge-creating MNC parents can actively expand the absorptive capacity of their subsidiaries. Using a teacher–student lens, this study examines the combined impact of specific structural mechanisms and motivational processes by MNC parents on the ability of 216 subsidiaries to absorb parent-initiated marketing strategies. The findings reveal that MNC parents can indeed cultivate subsidiaries’ ability to appropriate marketing knowledge through a combination of adopting specific social structures and investing in particular efforts. However, the effect of social structure on subsidiary absorptive capacity is indirect, and accounted for by the parents’ intensity of effort.",
    keywords = "Absorptive capacity, Headquarters - subsidaritet roles and relations, Marketing strategy, Organizational learning, Structural equation modelling",
    author = "Schleimer, {Stephanie Christine} and Torben Pedersen",
    year = "2014",
    month = "4",
    doi = "10.1057/jibs.2013.65",
    language = "English",
    volume = "45",
    pages = "303--320",
    journal = "Journal of International Business Studies",
    issn = "0047-2506",
    publisher = "Palgrave Macmillan Ltd.",
    number = "3",

    }

    The Effects of MNC Parent Effort and Social Structure on Subsidiary Absorptive Capacity. / Schleimer, Stephanie Christine; Pedersen, Torben.

    In: Journal of International Business Studies, Vol. 45, No. 3, 04.2014, p. 303-320.

    Research output: Contribution to journalJournal articleResearchpeer-review

    TY - JOUR

    T1 - The Effects of MNC Parent Effort and Social Structure on Subsidiary Absorptive Capacity

    AU - Schleimer, Stephanie Christine

    AU - Pedersen, Torben

    PY - 2014/4

    Y1 - 2014/4

    N2 - Although the literature provides ample evidence that the global transfer and local implementation of knowledge represents a key advantage for multinational corporations (MNCs), we lack comparable understanding as to whether knowledge-creating MNC parents can actively expand the absorptive capacity of their subsidiaries. Using a teacher–student lens, this study examines the combined impact of specific structural mechanisms and motivational processes by MNC parents on the ability of 216 subsidiaries to absorb parent-initiated marketing strategies. The findings reveal that MNC parents can indeed cultivate subsidiaries’ ability to appropriate marketing knowledge through a combination of adopting specific social structures and investing in particular efforts. However, the effect of social structure on subsidiary absorptive capacity is indirect, and accounted for by the parents’ intensity of effort.

    AB - Although the literature provides ample evidence that the global transfer and local implementation of knowledge represents a key advantage for multinational corporations (MNCs), we lack comparable understanding as to whether knowledge-creating MNC parents can actively expand the absorptive capacity of their subsidiaries. Using a teacher–student lens, this study examines the combined impact of specific structural mechanisms and motivational processes by MNC parents on the ability of 216 subsidiaries to absorb parent-initiated marketing strategies. The findings reveal that MNC parents can indeed cultivate subsidiaries’ ability to appropriate marketing knowledge through a combination of adopting specific social structures and investing in particular efforts. However, the effect of social structure on subsidiary absorptive capacity is indirect, and accounted for by the parents’ intensity of effort.

    KW - Absorptive capacity

    KW - Headquarters - subsidaritet roles and relations

    KW - Marketing strategy

    KW - Organizational learning

    KW - Structural equation modelling

    U2 - 10.1057/jibs.2013.65

    DO - 10.1057/jibs.2013.65

    M3 - Journal article

    VL - 45

    SP - 303

    EP - 320

    JO - Journal of International Business Studies

    JF - Journal of International Business Studies

    SN - 0047-2506

    IS - 3

    ER -