Dual Embeddedness and Subsidiary Knowledge Based Activities: Evidences from the KIBS sector

Embeddedness makes difference; subsidiaries of MNEs are connected both to the corporate organization as well as their local environment. The degree to which this dual embeddedness impacts knowledge exchange has intrigued... [ view full abstract ]

Embeddedness makes difference; subsidiaries of MNEs are connected both to the corporate organization as well as their local environment. The degree to which this dual embeddedness impacts knowledge exchange has intrigued scholars. In particular the potential of subsidiary knowledge development and transfer beg additional amplification. While several studies have been reported in this area, categorization based on the level of embeddedness integrating within a knowledge-based context has not been reported. In the present investigation we first propose a conceptual framework and then seek to validate it in the context of KIBS sector in the UK. The findings not only provide interesting insight into subsidiary knowledge development and knowledge transfer, but also indicate that the degree of subsidiaries internal and external embeddedness is of immense importance when identifying typologies of subsidiaries.