Selective attention and the initiation of the global knowledge-sourcing process in multinational corporations

Monteiro, L. Felipe

doi:10.1057/jibs.2014.72

Cited by 83 publications

(105 citation statements)

References 100 publications

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“…With respect to IB, we believe that confirmation bias may play an important role in explaining how managers process new information about foreign markets, thus shaping their perceptions of the distance of each market, and in turn influencing their preferences for particular business decisions. Recent work (Monteiro, 2015) affirms this, as it finds that pre-existing knowledge influences country choice for market entry.…”

Section: Introductionmentioning

confidence: 84%

Confirmation bias in individual-level perceptions of psychic distance: An experimental investigation

Baack

Dow²,

Parente

et al. 2015

J Int Bus Stud

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In this article we draw from social cognition theory to explore the influence of confirmation bias on perceptions of psychic distance. Despite the prominence of psychic distance, and other forms of distance, as potential predictor variables in international business (IB) research, very little work has been done exploring the factors and processes that shape a decision maker's perceptions of distance. We argue in this article that social cognition theory can help fill that void. Specifically, we hypothesize that confirmation bias may influence managers' processing of information concerning differences between cultures. Such a bias may cause managers to attend more to information that confirms pre-existing beliefs, and discount information that contradicts pre-existing beliefs, thus biasing their perceptions of psychic distance. Using an experimental approach, the impact of confirmation bias on perceptions of psychic distance is confirmed in a sample of 200 Australian managers. The observed changes in perceptions are also associated with changes in perceptions of risk and preferences for entry modes in a hypothetical business scenario. As a result this article demonstrates how the application of social psychology theories and methods can provide new theoretical perspectives to explain when, how, and why individual-level perceptions of psychic distance might diverge from national-level averages.

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Section: Introductionmentioning

confidence: 84%

Confirmation bias in individual-level perceptions of psychic distance: An experimental investigation

Baack

Dow²,

Parente

et al. 2015

J Int Bus Stud

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“…At the same time, a knowledge-seeking MNE strategy requires core corporate group knowledge to be combined with the expertise that lies behind the new lines of application being opened up by the competence-creating sub-unit, which therefore also requires a closer and more reciprocal relationship with its parent company (Cantwell and Piscitello 2014). This may in turn depend upon whether a subsidiary's knowledge comes to the attention of its parent (Monteiro 2015), and on the motivation associated with existing headquarter capabilities (Song and Shin 2008). So MNE structures have been transformed in the knowledge-driven and globally interconnected information age to facilitate a more intense interaction between the capabilities of firms and those of places, as well as with the changing governance structures of IB networks (Cantwell 2015).…”

Section: Conclusion: Directions For Further Researchmentioning

confidence: 99%

Innovation and international business

Cantwell

2016

Industry and Innovation

111

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While classical economic theories of growth emphasised international capital accumulation, and finance-based theories of foreign investment stressed international interest rate differentials and risk reduction, the technological accumulation approach examines international knowledge building by multinational enterprises and their international business (IB) networks. The two processes of innovation and internationalisation have become ever more interconnected as central drivers of development since the first industrial revolution, through to today's information age. The increasing significance of the knowledge-seeking motive for IB networks and of competencecreating subsidiary activities at a local level have linked localised innovation systems to IB and to international knowledge exchange. From a locational perspective, international knowledge connectivity has become critical for sustained innovation and growth. The shift of techno-socio-economic paradigm in the information age is associated with a shift in the character of IB and innovation, with critical implications for IB theory and concepts.

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“…First, throughout the paper, we have made the assumption that technology scouts deal with knowledge with some elements of novelty, i.e., knowledge that represents ‘something new and different’ for the organization or ‘departs significantly from existing product architecture’ (Carlile and Rebentisch, , p. 1184). However, recent research (Monteiro, ) has shown that sometimes an MNC goes around the globe only to end up paying attention to technologies that are very close to its existing knowledge base. In this paper, we have not differentiated opportunities with respect to their extent of novelty and how this might affect boundary‐spanning behaviour by technology scouts in harsh and slack times.…”

Section: Resultsmentioning

confidence: 99%

“…Interestingly, however, studies have given much less attention to examining how performance‐aspiration comparisons are likely to affect the activities of boundary spanners such as technology scouts. In other words, most studies have focused on the performance outcomes of spanning boundaries and performance as a result of boundary spanners’ actions (e.g., Asakawa et al, ; Doz et al, ; Monteiro, ). However, we believe that studying the inverse relationship – how performance may act as an input to technology scouts’ behaviour – can generate new insights into how the boundary‐spanning process unfolds in global organizations.…”

Section: Theorymentioning

confidence: 99%

“…The ability to tap into knowledge and technologies from outside an MNC's boundary has become a critical organizational activity to compete in environments characterized by rapid technological change (Doz et al, ; Gupta and Govindarajan, ). The focus of this paper is on the process by which managers in multinational corporations (MNCs) span organizational and national boundaries to tap into external knowledge and span internal boundaries to mobilize such knowledge within the organization (Monteiro, ; Monteiro and Birkinshaw, ). While this process holds substantial opportunities, it also poses immense challenges.…”

Section: Introductionmentioning

confidence: 99%

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How Does Performance Feedback Affect Boundary Spanning in Multinational Corporations? Insights from Technology Scouts

Klueter

Monteiro

2017

J Management Studies

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As much as prior research has shed light on the boundary‐spanning processes of global organizations and their (positive) impact on an MNC's performance, whether, when and how past performance ultimately shapes an MNC's boundary‐spanning activities remains an open question in management research. To tackle these questions, we examine the behaviour of technology scouts in global organizations who span organizational and national boundaries to tap into novel knowledge and span internal boundaries to present this knowledge to constituents inside the MNC. Drawing on the behavioural theory of the firm, we propose that the intensity of organizational boundary spanning, the likelihood of spanning national boundaries and the way technology scouts span internal boundaries to engage with members inside the organization are sensitive to how the MNC has performed relative to its aspirations. We support our theoretical expositions with insights gained from interviewing senior industry professionals with direct experience in technology scouting in MNCs.

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Selective attention and the initiation of the global knowledge-sourcing process in multinational corporations

Cited by 83 publications

References 100 publications

Confirmation bias in individual-level perceptions of psychic distance: An experimental investigation

Confirmation bias in individual-level perceptions of psychic distance: An experimental investigation

Innovation and international business

How Does Performance Feedback Affect Boundary Spanning in Multinational Corporations? Insights from Technology Scouts

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