While previous research has mostly focused on either knowledge stocks or knowledge flows, our study is among the first to integrate these perspectives in order to shed light on the complementarity effects of different types of knowledge stocks and flows in the multinational corporation (MNC). This study investigates intra-functional as well as cross-functional complementarity effects from the perspective of the knowledge recipient and tests their impact on the benefit created for MNC units. Based on a comprehensive sample of 324 relationships between MNC units, we find that both types of complementarity create benefits for these units, but that the effects from intra-functional combinations of knowledge stocks and flows are significantly stronger than from cross-functional combinations.

Strategy-making and entrepreneurial behaviour at the subsidiary level, in particular the phenomenon of subsidiary initiative, has received increasing research attention in recent years. In the fields of international business, strategy and entrepreneurship, several studies addressing aspects of this phenomenon have been conducted. They focused on different stages of the subsidiary initiative process, different theories and also different methodological levels. This puts subsidiary initiatives as a topic at the crossroads of several disciplines, so that theory-building remains fragmented, and there is a lack of perspective capturing the complexity of the entire subsidiary initiative process. Based on a comprehensive literature review, this paper discusses theoretical concepts and streams of thinking that have contributed to our understanding of the subsidiary initiative process, and develops an organizing framework based on stages and levels of the subsidiary initiative process. In order to integrate theories across levels, the authors identify ‘aggregation’ theories that guide the emergence of initiatives from the individual up to the network level, and also acknowledge theories that link the micro–macro divide and may help in the development of a more holistic view of
subsidiary initiatives.

We examine the tensions that make it difficult for a research-oriented university to achieve commercial outcomes. Building on the organizational ambidexterity literature, we specify the nature of the tensions (between academic and commercially-oriented activities) at both organizational and individual levels of analysis, and how these can be resolved. We develop hypotheses linking specific aspects of the organization and the individual researcher to the likelihood of their research projects generating commercial outcomes, and we test them using a novel dataset of 207 Research Council-funded projects, combining objective data on project outcomes with the perceptions of principal investigators. We show that the tension between academic and commercial demands is more salient at the level of the individual researcher than at the level of the organization. Universities show evidence that they are able to manage the tensions between academic and commercial demands, through for example their creation of ‘dual structures’. At the individual level, on the other hand, the tensions are more acute, so that the people who deliver commercial outcomes tend to be rather different to those who are accustomed to producing academic outcomes.

Purpose – At the pinnacle of the knowledge management hype, international consulting firms were widely viewed as the undisputed champions of the discipline. They were the ones that pioneered the development of innovative knowledge management systems, they were at the forefront of creating knowledge management cultures and they recognized the productive potential of knowledge workers. While knowledge continues to be prominent on the strategic agenda of leading consulting firms, several knowledge management challenges remain unsolved. To shed light on this matter the paper aims to investigate how knowledge management is really embedded in their organizations and with which critical issues these firms still struggle .

Design/methodology/approach – The paper presents a qualitative empirical study based on 37 in-depth interviews with representatives from international consulting firms in different locations around the world.

Findings – It is found that the promise of knowledge management can only be realized if people are open to changing business processes and adopt new ways of thinking.

Practical implictions – The study sheds fresh light on the knowledge management practices that have emerged in the consulting industry, and provides insights into the interplay of people and systems, the structuring of knowledge management, the divide between knowledge generalists and specialists, and the knowledge management strategy.

Originality/value – The paper presents a general approach to embedding knowledge management along the dimensions of people, systems and business processes and develops an integrative framework that links knowledge management strategies to a typical consulting project cycle. In addition, it sheds light on individual perceptions on the benefits from knowledge management.

Corporate R&D, one of the most shielded and centralised activities in the value chain, has recently experienced rapid internationalisation. However, academic writing has primarily concentrated on investments within 'core', i.e. triad, countries. The question to what extent firms invest in R&D in non-triad economies remains fairly uncharted territory. This paper provides insights regarding the type as well as the management of non-triad R&D laboratories by building on survey data from 49 leading German MNCs. We shed light on the motivations and pace of R&D investments and reveal that the mechanisms used in 'peripheral' countries considerably differ from 'core' country laboratories.

This paper aims to shed light on the interplay of knowledge transfer mechanisms and distance within the MNC. While it is largely undisputed that cross-boarder knowledge flows contribute to the firm's success, our knowledge on the effects of specific transfer mechanisms is scarce. We examine the impact of different dimensions of distance to test the applicability of personal coordination mechanisms (PCM) and technology-based coordination mechanisms (TCM) in situations of differentiation and dispersion. Data on 324 knowledge transfer relationships of MNC units was used to test our hypotheses. While TCM function relatively context-free, we find that PCM are moderated by distance. Our results support moderating effects of geographic, cultural and linguistic distance, which are vital to our understanding of knowledge transfer effectiveness in MNCs.

Cross-border integration is the central management issue for banks that expand internationally, and this is especially true in Central and Eastern Europe, where the pace of internationalisation through mergers and acquisitions has been rapid. A critical challenge in cross-border integration is aligning a multinational company's formal organizational structure with the distribution of capabilities across its subsidiary units, and this issue is explored by tracking the co-evolution of organizational structure and capabilities during the internationalisation of a large banking network into this region. Our focus is the Vienna head office of Bank Austria Creditanstalt, which was acquired first by HypoVereinsbank (Germany) and then UniCredit (Italy). Despite its formal role being downgraded during these changes, the unit continued to develop its distinctive capabilities. The key insight our article offers is that managing cross-border integration is not simply about recognizing the value of the distinctive capabilities of individual units and designing formal structures that successfully align with them. It is also about understanding the need for dynamic interaction between formal corporate structure and individual units' desires to retain power and influence, which have significant implications for the development of their organizational capabilities.

Drawing on a sample of 283 subsidiaries in three countries, we investigate how headquarters’ attention affects subsidiary performance.

Scholars have recently argued that top management’s attention is the most critical, scarce and sought-after resource in organizations (Haas and Hansen 2001; Bouquet and Birkinshaw 2008). However, the question how headquarters’ attention affects subsidiary companies remains largely unexplored.

Our study shows that subsidiaries which have a high level of strategic choice and receive attention from headquarters perform better than their peers. More specifically, we find that the interactions of subsidiaries’ autonomy, inter-unit power and initiatives with attention increase subsidiary performance.

This paper presents a process study on the evolution of new ventures. We adopt the theoretical lens of “archetypes,” which allows us to take a holistic perspective on new venture evolution and to provide rich insights into the interdependencies between the multiple contributory factors that shape the evolutionary process. Our analysis identifies three distinct “venture archetypes,” which typically emphasize one focal area of a business, and it sheds light on the sequencing of these archetypes. We show how the case ventures go through interarchetype transitions, which are triggered by collective cognitive dissonance between the venture leaders' understanding of the old interpretive scheme and the emerging reality and are resolved through internal negotiations. The research provides insights into new venture evolution, the theory of organizational archetypes, and punctuated equilibrium perspectives on organizational change.

Prior investigations treated subsidiary autonomy more or less as a static concept, but the headquarters-subsidiary relationship is likely to evolve and result in changing power positions over time. This article examines the static and dynamic impacts of external/internal embeddedness on the autonomy of overseas R&D subsidiaries. Based on data from 73 overseas R&D subsidiaries of German firms, we show that a dynamic perspective indeed produces counterintuitive results, namely that high internal embeddedness in the past may help laboratories gain higher levels of autonomy in the future, whereas high external embeddedness may lead to lower levels of autonomy in the future. Our results indicate that building trust and linking up with headquarters are important strategies for subsidiaries wishing to be granted autonomy in the future.

This paper, through a systematic survey of 83 international R&D engagements of 36 German MNCs, seeks to extend previous research on the location decisions of international R&D engagements and inform managers about the critical factors that may be considered when taking this important decision. Covering engagements in 21 countries, we show that the knowledge intensity of the industry as well as variables pertaining to the process school of internationalization play an important role when offshoring R&D.

The phenomenon of subsidiary initiative has received increasing attention in recent years, but the consequences of initiatives and the associated dynamics of headquarters–subsidiary relationships have received much less research attention. Building on resource dependence theory and self-determination theory we argue that two basic goals subsidiary managers pursue are to achieve autonomy vis-à-vis corporate headquarters, and influence over other units. We investigate how a subsidiary's past initiatives contribute to its bargaining power, and how headquarters’ response – through granting attention or monitoring – affects the realization of the subsidiary's goals. Using structural equation modeling, our hypotheses are tested by drawing on a sample of 257 subsidiaries located in three different countries (Australia, Canada and the United Kingdom). Our results show that subsidiaries are not able to increase their influence through initiatives unless they get headquarters’ attention. We also find that subsidiary initiatives have a direct effect on subsidiary autonomy, but the caveat is that initiatives also evoke headquarters monitoring, which in turn decreases the subsidiary's autonomy. In addition to providing insights into how subsidiaries can achieve their goals, the paper also sheds light on the critical role headquarters plays in leveraging initiatives, and the influence of individual subsidiaries in the multinational enterprise.