{"title":"Impact of policy uncertainty on subsidiary reverse knowledge transfer","authors":"Chun-Ping Yeh, Y. Hsiao, Sebastian Gebhardt","doi":"10.1111/emre.12661","DOIUrl":null,"url":null,"abstract":"Despite the recognized importance of subsidiary reverse knowledge transfer (RKT) for multinational enterprises' (MNEs') competitive advantages, little is understood about how host country policy uncertainty may affect it. This study, based on absorptive capacity and resource dependence theories and utilizing the global economic policy uncertainty (GEPU) index, examines 1565 firm‐year observations of Taiwanese MNE parent–subsidiary activities. Findings suggest that GEPU indirectly undermines subsidiary RKT benefit by reducing MNEs' global R&D intensity and geographical R&D diversity. Notably, this effect is mitigated when MNEs choose joint venture entry modes. This study enriches international business literature by elucidating the intricate relationships between the host country policy uncertainty, MNE strategies, and subsidiary RKT outcomes, thus contributing to a deeper scholarly understanding in the RKT domain.","PeriodicalId":47372,"journal":{"name":"European Management Review","volume":null,"pages":null},"PeriodicalIF":3.4000,"publicationDate":"2024-06-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"European Management Review","FirstCategoryId":"91","ListUrlMain":"https://doi.org/10.1111/emre.12661","RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"MANAGEMENT","Score":null,"Total":0}
引用次数: 0
Abstract
Despite the recognized importance of subsidiary reverse knowledge transfer (RKT) for multinational enterprises' (MNEs') competitive advantages, little is understood about how host country policy uncertainty may affect it. This study, based on absorptive capacity and resource dependence theories and utilizing the global economic policy uncertainty (GEPU) index, examines 1565 firm‐year observations of Taiwanese MNE parent–subsidiary activities. Findings suggest that GEPU indirectly undermines subsidiary RKT benefit by reducing MNEs' global R&D intensity and geographical R&D diversity. Notably, this effect is mitigated when MNEs choose joint venture entry modes. This study enriches international business literature by elucidating the intricate relationships between the host country policy uncertainty, MNE strategies, and subsidiary RKT outcomes, thus contributing to a deeper scholarly understanding in the RKT domain.
期刊介绍:
The European Management Review is an international journal dedicated to advancing the understanding of management in private and public sector organizations through empirical investigation and theoretical analysis. The European Management Review provides an international forum for dialogue between researchers, thereby improving the understanding of the nature of management in different settings and promoting the transfer of research results to management practice. Although one of the European Management Review"s aims is to foster the general advancement of management scholarship among European scholars and/or those academics interested in European management issues.