International diversification, subsidiary performance, and the mobility of knowledge resources

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalNot applicablepeer-review

97 Scopus Citations
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Author(s)

  • Fang Yulin
  • Michael Wade
  • Andrew Delios
  • Paul W. Beamish

Detail(s)

Original languageEnglish
Pages (from-to)1053-1064
Journal / PublicationStrategic Management Journal
Volume28
Issue number10
Publication statusPublished - Oct 2007

Abstract

We examine the link between international diversification, organizational knowledge resources, and subsidiary performance. The success of international corporate diversification depends on a firm's capability to transfer knowledge to its subsidiaries, and how its local subsidiaries effectively utilize that knowledge. As knowledge resources are imperfectly mobile, a firm may find it difficult to transfer knowledge to its subsidiaries. In our analysis of 4964 Japanese subsidiaries over a 14-year period, we find that knowledge that is valuable, but not rare, positively affects subsidiary performance in the short term, but not the long term. In contrast, knowledge that is both valuable and rare affects subsidiary performance in the long term, but not the short term. Copyright © 2007 John Wiley & Sons, Ltd.

Research Area(s)

  • Intangible assets, International diversification, Japanese foreign direct investment, Knowledge transfer, Resource-based view, Subsidiary performance

Citation Format(s)

International diversification, subsidiary performance, and the mobility of knowledge resources. / Yulin, Fang; Wade, Michael; Delios, Andrew; Beamish, Paul W.

In: Strategic Management Journal, Vol. 28, No. 10, 10.2007, p. 1053-1064.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalNot applicablepeer-review