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Foreign subsidiaries’ learning from local environments: An empirical test

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Abstract

Abstract and Key Results

  • This study examines antecedent factors that influence foreign subsidiaries’ innovation through learning from local environments, which in turn influences their knowledge contribution back to the headquarters. We argue that subsidiary local embeddedness, subsidiary top management team heterogeneity, and MNC corporate entrepreneurial culture are the key enablers for subsidiaries to learn and innovate in the local environments.

  • The findings support that the learning and innovation of U.S.-based subsidiaries are significantly influenced by their local embeddedness, their top management team heterogeneity, and the corporate entrepreneurial culture of their parent company, along with the control variables including subsidiary size and the internationalization of parent company.

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Authors and Affiliations

  1. Department of Management and Entrepreneurship, Baylor University, Waco, Texas, USA

    Shaohua “Carolyn” Mu (Assistant Professor)

  2. Department of Management, Virginia Polytechnic Institute and State University, Blacksburg, Virginia, USA

    Devi R. Gnyawali (Associate Professor) & Donald E. Hatfield (Associate Professor)

Authors
  1. Shaohua “Carolyn” Mu
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  2. Devi R. Gnyawali
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  3. Donald E. Hatfield
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Mu, S.“., Gnyawali, D.R. & Hatfield, D.E. Foreign subsidiaries’ learning from local environments: An empirical test. MANAGE. INT. REV. 47, 79–102 (2007). https://doi.org/10.1007/s11575-007-0005-5

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  • DOI: https://doi.org/10.1007/s11575-007-0005-5

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