Knowledge Transfer and Accomodation Effects in Multinational Corporations: Evidence from European Subsidiaries

Foreign subsidiaries in multinational corporations (MNCs) possess knowledge that has different sources (e.g., the firm itself or various sources in the environment). How such sources influence knowledge transfer is not well understood. Drawing on the “accommodation effect” from cognitive psychology, the authors argue that accumulation of externally sourced knowledge in a subsidiary may reduce the value of transferring that subsidiary’s knowledge to other parts of the MNC. The authors develop a parsimonious model of intrafirm knowledge transfer and test its predictions against a unique data set on subsidiary knowledge development that includes the sources of subsidiary knowledge and the extent of knowledge transfer to other MNC units. The authors show that a high level of externally sourced knowledge in a subsidiary is associated with a high level of knowledge transfer from that subsidiary only if a certain tipping point of internally sourced knowledge has been surpassed. This suggests that subsidiary knowledge stocks that are balanced in terms of their origins tend to be more valuable, congruous, and fungible, and therefore more likely to be transferred to other MNC units

Changing perspectives on the internationalization of R&D and innovation by multinational enterprises: a review of the literature

Internationalization of R&D and innovation by Multinational Enterprises (MNEs) has undergone a gradual and comprehensive change in perspective over the past 50 years. From sporadic works in the late 1950s and in the 1960s, it became a systematically analysed topic in the 1970s, starting with pioneering reports and “foundation texts”. Our review unfolds the theoretical and empirical evolution of the literature from dyadic interpretations of centralization versus decentralization of R&D by MNEs to more comprehensive frameworks, wherein established MNEs from Advanced Economies still play a pivotal role, but new players and places also emerge in the global generation and diffusion of knowledge. Hence views of R&D internationalization increasingly rely on concepts, ideas and methods from IB and other related disciplines such as industrial organization, international economics and economic geography. Two main findings are highlighted. First, scholarly research pays an increasing attention to the network-like characteristics of international R&D activities. Second, different streams of literature have emphasized the role of location- specific factors in R&D internationalization. The increasing emphasis on these aspects has created new research opportunities in some key areas, including inter alia: cross-border knowledge sourcing strategies, changes in the geography of R&D and innovation, and the international fragmentation of production and R&D activities

The Link between Attachment Style and Self-Reported Olfactory Ability: A Preliminary Investigation

Individuals in healthy romantic relationships gain significant benefits to their psychological wellbeing and physiological health. Notably, the majority of relationship research has focused on how adult attachment influences these relationship outcomes while the role of olfaction remains an emerging research focus. The aim of the current study was to bring together these seemingly unrelated factors–attachment and olfaction–in an online quasi-experimental design. The participants were 401 undergraduate students, predominantly females, ranging in age from 17 to 70 years. Participants completed a battery of questionnaires that evaluated their attachment tendencies, olfactory ability and experiences in romantic relationships. Results indicated that attachment insecurity, across both attachment anxiety and avoidance, was associated with decreased olfactory functioning for females. These findings provide preliminary evidence that olfaction is related to romantic relationship maintenance and suggests that body odors could be fundamental for evoking the attachment system. These findings also elicit enticing new avenues of research which can assist psychologists to provide targeted treatments to individuals with olfactory deficits and insecure attachment tendencies