Authors:

  • Prithwiraj Choudhury

Excerpt

Shifting Centers of Gravity: Host Country versus Headquarters Influences on MNC Subsidiary Knowledge Inheritance. Prithwiraj Choudhury, Tarun Khanna, 2018, Paper, "While there is a rich literature of knowledge inflows into the multinational subsidiary, the literature is rooted in how subsidiaries inherit knowledge from the headquarters (HQ). In this paper we take the first step to liberate the construct of “subsidiary knowledge inheritance” from its umbilical attachment to the MNC headquarters. We build on the prior theory of subsidiary absorptive capacity and argue that larger subsidiaries, characterized by greater knowledge stock and a greater fraction of local employees, could plausibly absorb more knowledge from the local host country context compared to absorbing knowledge from the headquarters." Link