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Subsidiaries and knowledge creation: the influence of the MNC and host country on innovation

Almeida, Paul, Phene, Anupama·2004·Strategic Management Journal

Abstract

This paper studies the influence of external knowledge on innovation in subsidiaries of multinational firms. The focus on subsidiaries is especially interesting since they are simultaneously embedded in two knowledge contexts: (a) the internal multinational corporation (MNC) comprised of the headquarters and other subsidiaries; and (b) an external environment of regional or host country firms. We develop hypotheses to suggest that the extent of influences of these contexts on subsidiary technological innovation depends on the characteristics of the knowledge network (technological richness and diversity) and the knowledge linkages of the subsidiary with other entities. The study uses patent citation data pertaining to innovations by foreign subsidiaries of U.S. semiconductor firms to test these hypotheses. The paper finds that (a) the technological richness of the MNC, (b) the subsidiary's knowledge linkages to host country firms, and (c) the technological diversity within the host country have a positive impact on innovation. Copyright © 2004 John Wiley & Sons, Ltd.

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Metadata

Authors
Almeida, P., & Phene, A.
Venue
Strategic Management Journal
Publisher
Wiley
Published
2004-07-20
Volume
25
Issue
8-9
Pages
847-864
ISSN
  • 0143-2095 (ISSN-L)
  • 1097-0266
OpenAlex
W2128876255
Cited by
796
References
10
FWCI
47.45
Type
journal article
Language
en
Open access
closed

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CoChat. (2026). Citation check: Subsidiaries and knowledge creation: the influence of the MNC and host country on innovation. https://app.cochat.ai/papers/10.1002/smj.388
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Almeida, P., & Phene, A. (2004). Subsidiaries and knowledge creation: the influence of the MNC and host country on innovation. Strategic Management Journal. https://doi.org/10.1002/smj.388

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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.