Journal
JOURNAL OF WORLD BUSINESS
Volume 51, Issue 4, Pages 641-653Publisher
ELSEVIER SCIENCE INC
DOI: 10.1016/j.jwb.2016.04.001
Keywords
Local knowledge; Local knowledge disadvantage; Local-global knowledge interaction; Qualitative study; China
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Existing theories of international business and strategy do not fully explain how local knowledge disadvantage faced by foreign investors can be mitigated. We conducted an in-depth qualitative study into four MNCs to investigate the micro-processes of how they generated value from their dispersed sources of local knowledge in China. The results suggest an interactive model: that MNCs employed management processes encompassing three strategically interconnected efforts global knowledge penetration, local-global knowledge blending, and local-global knowledge integration. The model highlights the interplay between global and local knowledge and challenges extant research that solely focuses on the transfer of either home-based or local knowledge. (C) 2016 The Authors. Published by Elsevier Inc.
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