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The Effects of Political Ties and Organizational Distance in Chinese MNCs on Knowledge Acquisition
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies.
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies.
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies.ORCID iD: 0000-0001-5393-2440
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies.
2018 (English)In: Academy of Management, 2018Conference paper, Published paper (Refereed)
Abstract [en]

From the ‘springboard perspective’, Chinese multinationals are assumed to make knowledge-seeking overseas investments. These investments should be followed by headquarters demands for knowledge transfer from their subsidiaries, particularly those located in advanced markets and running R&D activities, but that is not always the case. Acknowledging political influence as an important unique aspect of emerging-countries organizations, this study is set to generate new knowledge on what drives HQ demand for subsidiary knowledge transfer in Chinese multinationals. Based on the survey data of 128 headquarters-subsidiary dyadic relationships within 80 Chinese multinationals, our findings indicate specifically that political ties of Chinese headquarters enhance organizational distance between home- and host- organizations, which triggers higher demand of knowledge from subsidiaries by headquarters. But, by showing how subsidiary willingness to transfer knowledge (the voice of subsidiaries) is an important driver of headquarters demand of knowledge (the attention of headquarters), we identify a paradox as organizational distance at the same time augment headquarters demand and diminished subsidiary willingness to transfer. This study contributes to international business literature, particularly concerning emerging-market multinationals, cross-border knowledge acquisition and distance, by indicating the indirect effects of political ties and the paradox effects of organizational distance on headquarters knowledge transfer demand.

Place, publisher, year, edition, pages
2018.
Keywords [en]
Political ties, Organizational distance, subsidiary willingness, HQ demand, Chinese multinationals
National Category
Business Administration
Identifiers
URN: urn:nbn:se:uu:diva-404043OAI: oai:DiVA.org:uu-404043DiVA, id: diva2:1392576
Conference
Academy of Management Annual Conference
Available from: 2020-02-07 Created: 2020-02-07 Last updated: 2020-02-07

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Su, CongKong, LingshuangCiabuschi, FrancescoHolm, Ulf

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CiteExportLink to record
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