Knowledge Breadth of MNC Subsidiaries and the Duration of Host-Country Firms’ Search

40 Pages Posted: 13 Sep 2013 Last revised: 14 Mar 2015

See all articles by Alessandra Perri

Alessandra Perri

Ca Foscari University of Venice - Department of Management

Raffaele Oriani

Luiss Guido Carli University

Francesco Rullani

Ca Foscari University of Venice, Bliss - Digital Impact Lab

Date Written: July 1, 2013

Abstract

The aim of this paper is to investigate the factors influencing the speed at which knowledge flows from foreign to domestic firms. The focus is not on whether a knowledge spillover occurs, but on the time it takes to spread the MNC subsidiary knowledge in the local area. Filling the gap about spillover speed in International Business by means of the insights from Innovation Studies – specifically, the literature on search and NK modelling, we propose a conceptual model where the speed of local knowledge diffusion is influenced by subsidiaries’ technology sourcing strategies. We then test our model using a database covering 1336 US patents from the semiconductors sector. We find that not only the breadth of the set of subsidiaries’ knowledge sources slows down local knowledge diffusion, but that the delay is mainly related to the diversity of global and internal sources used by the subsidiary, hinting at strategies that MNCs can use to further protect their knowledge.

Keywords: speed, search, foreign subsidiaries, local firms

JEL Classification: O32, M16

Suggested Citation

Perri, Alessandra and Oriani, Raffaele and Rullani, Francesco, Knowledge Breadth of MNC Subsidiaries and the Duration of Host-Country Firms’ Search (July 1, 2013). Department of Management, Università Ca' Foscari Venezia Working Paper No. 7/2013, Available at SSRN: https://ssrn.com/abstract=2324452 or http://dx.doi.org/10.2139/ssrn.2324452

Alessandra Perri (Contact Author)

Ca Foscari University of Venice - Department of Management ( email )

San Giobbe
Cannaregio 873
Venice, 30121
Italy

Raffaele Oriani

Luiss Guido Carli University ( email )

Viale Romania, 32
Rome, 00196
Italy
+390685225908 (Phone)

Francesco Rullani

Ca Foscari University of Venice, Bliss - Digital Impact Lab ( email )

San Giobbe, Cannaregio 873
Venice, VE 30121
Italy
+390412347428 (Phone)

HOME PAGE: http://www.francescorullani.com

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