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Drawing upon the resource-based view this study aims to examine the connections between formal and informal business relationships and resource-bridging and adaptive capabilities within the context of foreign subsidiaries of multinational enterprises (MNEs) operating in Thailand. Based on prior literature emphasizing business network ties as sources of competitive advantage in emerging markets, this study extends the discourse by investigating the moderating effects of technological turbulence, power distance and assertiveness.

This study uses a quantitative research approach, using data obtained from a self-administered survey conducted among 168 foreign subsidiaries spanning diverse industries in Thailand. The data were analyzed by using multiple-group structural equation modeling to test the hypothesized relationships.

Cultivating different types of business ties enables foreign subsidiaries to improve different types of capabilities. While interpersonal relationships (i.e. informal businessties) enable them to develop their abilities to combine various resources (i.e. resource-bridging capability), rigid contractual-based relationships (i.e. formal businessties) help them to be more adaptive (i.e. adaptive capability). These relationships are also contingent upon the levels of technological turbulence, host-country power distance and host-country assertiveness.

This research builds upon prior research on network ties and capability building by delineating the specific nature of capabilities. Contradicting to the previous findings, demonstrating a negative relationship between formal business ties and capabilities, this study found that each type of business tie enables foreign subsidiaries to enhance different types of capabilities under different circumstances. Moreover, this study adopts a lens of host-country national culture rather than home-country culture in investigating the moderating effects of power distance and assertiveness.

This paper aims to draw upon social cognitive theory to develop a conceptual framework of four types of factors: individual, social, organisational and cultural that influence an individual’s knowledge sharing behaviour.

Data from 298 employees in Myanmar’s banking industry were analysed using the structural equation modelling (SEM) approach.

The results reveal that an individual’s absorptive capacity, trust and social interaction significantly impact knowledge-sharing behaviour. Additionally, the study found the moderating influence of knowledge sharing opportunity and collectivism in examining the impact of absorptive capacity, trust and social interaction on knowledge sharing behaviour.

Future research may consider other dimensions of cultural dimensions, and extending the model by adding outcomes of knowledge sharing behaviour such as innovation or productivity could also be considered.

Organisations need to consider absorptive capacity in the recruitment process, increase trust and social interaction among employees, promote knowledge-sharing opportunities and collectivism to promote knowledge-sharing behaviour.

The study’s distinctive contribution is the Myanmar bank sector's under-researched context for investigating the reverse relationship between absorptive capacity and knowledge sharing behaviour. The moderating effects of knowledge sharing opportunity and collectivism ignored mainly in the knowledge sharing literature were investigated in this study.