Subsidiary importance and knowledge seeking

Abstract

Most studies of subsidiary knowledge flows involve technological knowledge seeking, and exclude currently less important subsidiaries in the multinational corporation (MNC). Yet those subsidiaries are often located in developing markets with high economic growth and expansion opportunities for MNCs. Less is known about knowledge flows between less important subsidiaries, or about operational knowledge seeking. This study proposes a definition for subsidiary importance, compares more and less important subsidiaries, and examines technological and operational knowledge seeking. Findings suggest headquarters remain the dominant source for technological knowledge for both high and low importance subsidiaries but operational knowledge seeking is more varied.