Learning from international business affiliates: developing resource-based learning capacity through networks and knowledge acquisition

Resource-based learning capacity (RBLC) is an organization's specific resources - both human and tangible - that can be organized to enhance learning processes. This study develops and tests a model that examines the relationship between the learning efforts of focal firms from their international business affiliates (IBAs) - organizations located outside the focal firm's domestic market with whom the focal firm has a relationship - and the focal firms' RBLC. This learning process refers to the transfer of knowledge from the IBA to the focal firm. Results indicate that while learning effectiveness positively influences the RBLC of the focal firm, learning efficiency has a negative impact on RBLC. The IBA's home country network centrality and the tie strength between the focal organization and the IBA are found to influence learning effectiveness positively. Tie strength also enhances learning efficiency. Finally, the findings indicate that the IBA's home country network centrality enhances the strength of the ties between the focal organization and its IBA.Resource-based learning capacity Absorptive capacity Effective learning Efficient learning Network centrality Tie strength

Cross-Border Learning, Technological Turbulence and Firm Performance

Using knowledge-based view (KBV) and contingency arguments, we develop and test a model that investigates the relationship between the effectiveness and efficiency of cross-border knowledge gained from international business affiliates (IBAs) and the focal (recipient) firm’s performance. We argue that both of these dimensions of learning not only have a direct and positive effect on the performance of the focal firm but also a synergistic one. Also, we suggest that the direct and positive effect of both the effectiveness and the efficiency in learning from the IBA on focal firm performance is moderated by the technological turbulence of the context in which the focal firm operates. Results indicate that the effectiveness of learning, although not the efficiency in learning, positively impacts the focal firm’s performance. However, cross-border learning efficiency and effectiveness jointly improve the focal firm’s performance. Results show that the level of technological turbulence attenuates the positive effect of the effectiveness of learning on the focal firm’s performance. In fact, under high technological turbulence conditions, effective learning becomes detrimental to the focal firm’s performance

Reverse knowledge transfer from overseas acquisitions: a survey of Indian MNEs

In this paper, we examine the effects of subsidiary level factors on reverse knowledge transfer (RKT) in MNEs from the emerging market of India (EM-MNEs). We argue that subsidiary level competencies and capabilities play a vital role in persuading the parent EM-MNEs to initiate the RKT in their attempt to overcome the disadvantages they have. The competency levels of the subsidiary have been captured in terms of the role that the subsidiary has in the network and its host country endowments. In addition, RKT requires the subsidiary units to collaborate closely with the parent EM-MNEs and is also dependent on the extent of complexity of this knowledge. The study involves a survey of MNEs from the emerging market of India with overseas acquisitions. We develop a set of hypotheses and test them with the data using OLS regression. Results show that higher levels of collaboration facilitate RKT to the parent firm, and this effect is more prominent in high technology and knowledge intensive industries. Also, subsidiaries that hail from host countries with a higher competitive index compared to India and those that perform the role of specialised contributors contribute more towards RKT. In addition, a higher level of knowledge complexity leads to a greater extent of RKT