The influence of competences and institutions on the international market orientation in foreign-owned subsidiaries

European Management Review

2020

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The purpose of this paper is to explore how managers transform human, renewal, and entrepreneurial capital through specific organizational learning practices into superior innovation performance. We draw implications for managing organizational learning and guiding companies on how to create innovation-based competitive advantages grounded in the human aspects of intellectual capital. The study is based on a survey of companies located in the transitional economy of Serbia. We found that human, renewal, and entrepreneurial capital all positively affect organizational learning practices. Furthermore, organizational learning practices contribute to innovation performance on their own and in combination with the tested human-based intellectual capital dimensions. The integration of fuzzy set qualitative comparative analysis (fsQCA) confirms a pattern of equifinality, as there are multiple combinations of static and dynamic conditions leading to superior innovation performance. This paper is among the first attempts to merge the disciplines of intellectual capital (IC) and knowledge management (KM) and combine symmetrical and asymmetrical techniques to determine which configurations may yield organizational benefits in terms of innovation performance outcomes.

Section: Data Collection and Samplementioning

confidence: 99%

The Role of Multidimensional Intellectual Capital and Organizational Learning Practices in Innovation Performance

Cabrilo

European Management Review

2020

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“…Finally, subsidiary competences have been measured along Porter's value chain activities reaching from sales to R&D, in a total of seven dimensions as found in . This is because competencies in subsidiaries can create resource dependencies and accordingly influence the overall importance of the subsidiary within the MNE network (Dahms, 2015(Dahms, , 2018.…”

Section: Control Variablesmentioning

confidence: 99%

Headquarters value added and subsidiary performance: insights from Thailand

Kingkaew

2018

RIBS

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Purpose The purpose of this paper is to understand the impact of network relationship strength and subsidiary initiatives on the headquarters value added and performance in foreign-owned subsidiaries. Design/methodology/approach This study is based on survey data collected from foreign-owned subsidiaries located in Thailand. The authors use symmetric structured equation modelling partial least squared (SEM-PLS) and asymmetric fuzzy set qualitative comparative analysis (fsQCA) techniques to analyse the data. Findings The authors found that intra-organisational relationship strength is one of the key determinants for high headquarter value added. They also found that headquarter value added plays a crucial role in explaining subsidiary performance. The role of subsidiary initiatives seem overall less pronounced than initially thought. Originality/value The originality of this study lies in the conceptual framework based on networks and subsidiary initiatives. This is one of the few studies that empirically tests headquarters value-added determinants in subsidiaries located in an emerging market. Furthermore, the authors use SEM-PLS and fsQCA to look beyond more commonly tested symmetric associations.

“…The competence-based view of the firm argues that firms sustain their competitiveness through the development of relative knowledge advantages (Dahms, 2019b(Dahms, , 2019cHamel & Prahalad, 1996). Those competencies are, in the case of multinational enterprises, globally dispersed in the form of value adding activities (Verbeke et al, 2016).…”

Section: Competencies and Csr Focusmentioning

confidence: 99%

Global and Local CSR Strategies in Foreign-Owned Subsidiaries: The Role of Networks and Competencies

Multidiscip. bus. rev (Impr.)

2020

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The purpose of this research is to investigate the role of networks and competency dimensions in determining the corporate social responsibility (CSR) strategy of foreign-owned subsidiaries. Survey data has been collected from subsidiary managing directors and analysed using structured equation modelling and fuzzy set qualitative comparative analysis techniques. We show that networks and competencies can have competing as well as complementary effects on the global and local CSR strategies. For instance, inter-organisational network strength and competencies in high primary value chain activities seem to drive global as well as local CSR activities. However, the case is more complex for intra-organisational network relationships and subsidiaries with competencies in supporting value chain activities. The originality of this paper lies in the detailed investigation of how network relationships and competencies affect global and local CSR strategy development. We also provide novelty in applying a combination of symmetric (SEM-PLS) and non-symmetric (fsQCA) analytical techniques.