Frithjof Arp and Michał K. Lemański
The purpose of this paper is to examine and reflect on the mobility of ideas between multinational corporation (MNC) headquarters and subsidiaries. Does it always represent…
Abstract
Purpose
The purpose of this paper is to examine and reflect on the mobility of ideas between multinational corporation (MNC) headquarters and subsidiaries. Does it always represent (positively perceived) knowledge transfer or can it sometimes constitute (negatively perceived) intra-corporate plagiarism? What are antecedents and consequences of negatively perceived mobility of ideas?
Design/methodology/approach
The authors conceptualise inter-unit knowledge transfer in MNCs without recognition of originators as an act of intra-corporate plagiarism. The conceptualisation is informed by theoretical perspectives in the literature and indicative data emerging unexpectedly from a study designed to examine knowledge transfer in MNCs. These illustrate the concept, point to factors affecting the propensity to plagiarise, and provide preliminary insight on both negative and positive consequences. Aiming to build theory, the authors offer propositions for further research.
Findings
The conceptualisation suggests that adopting units lose access to the original sources of ideas as plagiarism victims may establish defensive strategies. Originators of ideas may experience loss of trust, be unsupportive of implementation and erect barriers to future mobility. There is risk of reputation loss and rejection of ideas and practices from other units. However, the conceptualisation also suggests that, ironically and counterintuitively, plagiarism may increase the mobility of ideas within MNCs.
Research limitations/implications
The authors do not test hypotheses and make no claims from the data about statistical validity or prevalence of the phenomenon. As the emergent data are not longitudinal, and specific to human resource management practices, the authors cannot empirically establish all antecedents and consequences of intra-corporate plagiarism. Hence, the theorisations primarily rely on perspectives in the literature. The study merely offers the theoretical conceptualisation of the phenomenon and propositions for future research.
Practical implications
Drawing on theoretical perspectives in the literature at the country level (ethnocentrism, dominance effects, legitimacy, capability) and organisation level (not-invented-here syndrome, micro-politics), the study indicates consequences that MNCs may wish to consider in their knowledge management.
Originality/value
The first contribution is the conceptualisation of inter-unit knowledge transfer in MNCs without recognition of originators as an act of intra-corporate plagiarism. Second, the authors point out that knowledge transfer directionality reported in other research may be based on intentional or unintentional misrepresentation. Third, the authors theorise intra-corporate plagiarism as potentially useful in mitigating ethnocentrism, country-of-origin dominance effects and perceptions about legitimacy and capability.
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The purpose of this chapter is to conceptually analyze reverse transfers of human resource management practices from subsidiaries of transnational corporations in emerging markets…
Abstract
Purpose
The purpose of this chapter is to conceptually analyze reverse transfers of human resource management practices from subsidiaries of transnational corporations in emerging markets to their headquarters in developed countries.
Methodology/approach
This is a conceptual chapter based on a review of the pertinent literature. Analysis is performed at the organizational and national levels.
Findings
We identify the type of transnational corporation best positioned to learn and utilize the potential of its emerging market subsidiaries to advance its human resource management practices. We further identify the types of practices best suited for reverse transfer.
Research limitations/implications
Empirical tests of our propositions are needed. We encourage researchers to extend our research by considering the regional (supra-national), industry and individual levels of analyses.
Practical implications
Managers are informed when and where potential for learning new practices is the greatest, and are urged to scrutinize those corporate units where such potentials exist, and yet transfers do not occur.
Originality/value
Emerging markets offer substantial learning potential for transnational corporations, yet most recent studies focus on transfer of technology and product innovations from subsidiaries, leaving the transfer of human resource management practices largely unexplored. Therefore, this study advances research on organizational knowledge and innovation management, and organization of transnational corporations.
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Xiaoyan Luo and Michał K. Lemański
To understand the rationale for foreign direct investment of Chinese electronic companies, their location decisions and entry mode choices
Abstract
Purpose
To understand the rationale for foreign direct investment of Chinese electronic companies, their location decisions and entry mode choices
Methodology/approach
Secondary data on foreign direct investment of the top 100 companies in China’s electronics industry are analysed. The first part covers an exploratory analysis of the industry and the second part presents a comparative longitudinal analysis of three case studies of representative companies: Haier, Huawei, and Lenovo.
Findings
The three key findings are: (1) market-seeking is the primary motivation for foreign direct investment of Chinese companies in the electronics industry, yet the strategic-asset-seeking gains importance as the internationalization of the company advances; (2) foreign investment path normally starts at adjacent foreign markets, but more distant markets are gradually targeted and become more important for the company; (3) wholly owned investments are the preferred market entry modes in the international expansion.
Research limitations/implications
This research is based on secondary data, and more in-depth, interview-based studies are needed to explore the perceptions of decision-makers, and a plethora of contextual factors, which result in specific market entry decisions. As only the 100 largest companies were studied, future research should put under scrutiny also internationalization of smaller firms.
Practical implications
Implications of such findings are discussed in the light of classic internationalization theories as well as the current research on internationalization of companies from emerging/developing countries.
Originality/value
Provides an account of foreign direct investment in a context of a substantial and growing importance for the practice of international business, and identifies an agenda for promising future scholarly inquiries.