Technology sourcing in multinational enterprises and the roles of subsidiaries: An empirical investigation

This paper views the Multinational Enterprise (MNE) as a differentiated learning network with foreign subunits playing a critical role in managing knowledge. Drawing on a sample of 92 subsidiaries operating in Greece, it empirically tests the relationship between sources of technology acquired and/or generated (internally or externally) and relates them to differently strategically motivated subsidiaries. Our findings record the existence of a multifaceted network of technology generation and transmission, which is differentiated among the different types of subsidiaries. In particular, results confirm the fact that larger and innovative subsidiaries have granted access to wider sources of technology. Moreover, evidence indicates that product mandates, as well as subsidiaries of a more efficiency-seeking nature, are likely to be better embedded in the local environment. (c) 2005 Elsevier Ltd. All rights reserved.