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01.08.2010 | Research Article

The Effect of Quantity, Quality and Timing of Headquarters-initiated Knowledge Flows on Subsidiary Performance

Erschienen in: Management International Review | Ausgabe 4/2010

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Abstract

  • This paper develops and tests a model that explains how the quality, quantity and timing of knowledge flows from headquarters influence subsidiary performance. It extends recent research on vertical knowledge flows between global headquarters and international subsidiaries.
  • We find a positive quality/performance relationship and a curvilinear quantity/performance relationship, indicating that too much knowledge sharing can be detrimental to the receiving subsidiary. Most importantly, we show that the timing of a knowledge flow significantly affects subsidiary sales performance.

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Fußnoten
1
In a wider context, we could add flows between the focal unit (headquarters or subsidiary) and its environment [see, for example, the typology developed by Mudambi (2002)]. However, these “outside” flows are not the focus of the present investigation.
 
2
Gupta and Govindarajan (2000) measure knowledge across nine knowledge categories: market data on consumers, market data on competitors, product design, process design, marketing know-how, purchasing know-how, packaging design, distribution know-how, management system and practices. While these categories are suitable for their context, they only marginally capture the types of knowledge studied in this paper.
 
3
All of the international sales subsidiaries sold the same collections at the same time of the year. The weather in Europe was relatively similar across the sampled countries during the observed sales season and did not influence sales significantly. Therefore, factors that fashion industry observers indicate can influence net sales, such as product styles, weather, and selling time in the year, are controlled as having an equal impact on all sales subsidiaries. This result may reflect the tendency of Europeans to obtain their summer clothing irrespective of the weather at home to use and wear during their summer vacations abroad.
 
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Metadaten
Titel
The Effect of Quantity, Quality and Timing of Headquarters-initiated Knowledge Flows on Subsidiary Performance
Publikationsdatum
01.08.2010
Erschienen in
Management International Review / Ausgabe 4/2010
Print ISSN: 0938-8249
Elektronische ISSN: 1861-8901
DOI
https://doi.org/10.1007/s11575-010-0046-z