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    The delicate balance: Managing technology adoption and creation in multinational affiliates in an emerging economy

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    Wang_International_Business_Review.pdf (463.2Kb)
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    Publication date
    2016-11
    Author
    Liu, X.
    Vahtera, P.
    Wang, Chengang
    Wang, J.
    Wei, Yingqi
    Keyword
    Resource-based view; Technology adoption; Technology creation; Multinational enterprises; Emerging economy; China
    Rights
    © 2016 Elsevier. Reproduced in accordance with the publisher's self-archiving policy. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/
    Peer-Reviewed
    Yes
    
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    Abstract
    From a perspective of the resource-based view, this paper analyses the inter-connection between technology adoption and creation in affiliates of multinational enterprises (MNEs) in an emerging economy. Operating below the international technological frontier, multinational affiliates are more motivated to adopt technologies already existent from their MNEs than create new technologies, as the former already gives them competitive advantages over local firms. When technology creation is required, multinational affiliates will adopt further technology-based resources from their MNEs as they are unavailable in an emerging economy. As a result, technology adoption is a necessary but not sufficient condition for multinational affiliates to conduct technology creation. Given that networks are particularly important for working around institutional voids in the context of an emerging economy, this paper also investigates the different roles of R&D support from internal and external networks of multinational affiliates in technology adoption and creation. Hypotheses are tested and partially supported based on unique data from 465 multinational affiliates in China.
    URI
    http://hdl.handle.net/10454/11158
    Version
    Accepted Manuscript
    Citation
    Liu X, Vahtera P, Wang C et al (2016) The delicate balance: managing technology adoption and creation in multinational affiliates in an emerging economy. International Business Review. 26(3): 515-526.
    Link to publisher’s version
    http://dx.doi.org/10.1016/j.ibusrev.2016.11.002
    Type
    Article
    Collections
    Management and Law Publications

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