External and Internal Learning in Subsidiaries Key to MNC Success
The article explores how knowledge is developed in multinational corporation subsidiaries and its impact on overall performance. The researchers used a mix of data to show that subsidiary knowledge is influenced by both external relationships and internal interactions within the corporation. They found that whether a subsidiary learns from outside sources or within the company affects how that knowledge can be used by other units in the corporation. Barriers to knowledge transfer are more common when subsidiaries have strong ties to customers or suppliers. When subsidiaries are deeply connected to their local market, headquarters can help transfer knowledge across subsidiaries using methods like centers of excellence.