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Subsidiary autonomy and knowledge transfer

Peder Veng Søberg (Department of Materials and Production, Aalborg University, Copenhagen, Denmark and Sino-Danish Center for Education and Research, Aarhus C, Denmark)
Brian Vejrum Wæhrens (Department of Materials and Production, Aalborg Universitet Teknisk-Naturvidenskabelige Fakultet, Aalborg, Denmark)

Journal of Global Operations and Strategic Sourcing

ISSN: 2398-5364

Article publication date: 29 November 2019

Issue publication date: 18 June 2020

391

Abstract

Purpose

This paper aims to explore the effect of subsidiary autonomy on knowledge transfers during captive offshoring to emerging markets.

Design/methodology/approach

Five longitudinal cases of captive R&D and manufacturing offshoring to emerging markets.

Findings

The propositions entail the dual effect of operational subsidiary autonomy on primary knowledge transfer and reverse knowledge transfer. For newly established subsidiaries, operational subsidiary autonomy has a mainly negative effect on primary knowledge transfer and a mainly positive effect on reverse knowledge transfer and local collaboration activities increase this effect. Strategic subsidiary autonomy is mainly negative for primary and reverse knowledge transfer.

Research limitations/implications

Limitations concerning the applied exploratory case study approach suggest that further research should test the identified relationships using surveys, after the initial pilot study.

Practical implications

A gradual increase of operational subsidiary autonomy as the subsidiary capability level increases is beneficial to ensure primary knowledge transfer. Allowing subsidiaries to collaborate locally within the confines of their mandates benefits reverse knowledge transfer.

Originality/value

This paper extends the secondary knowledge transfer concept to include knowledge flows with local collaboration partners, not only other subsidiaries and clarifies the distinction between operational and strategic autonomy concerning local collaboration. A subsidiary asserts operational autonomy when its collaboration with local partners relates to its existing mandate. A subsidiary asserts strategic autonomy when it collaborates with local partners beyond this mandate.

Keywords

Acknowledgements

We are grateful for the support granted by the Sino Danish Center for Education and Research, The Danish Council for Strategic Research and Handelsbanken, Jan Wallanders och Tom Hedelius Stiftelse, Tore Browaldhs stiftelse.

Citation

Søberg, P.V. and Wæhrens, B.V. (2020), "Subsidiary autonomy and knowledge transfer", Journal of Global Operations and Strategic Sourcing, Vol. 13 No. 2, pp. 149-169. https://doi.org/10.1108/JGOSS-04-2018-0016

Publisher

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Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited

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