The impact of social and relational contexts on innovation transfer in foreign subsidiaries Online publication date: Wed, 18-Mar-2015
by Maitê Alves Bezerra; Felipe Mendes Borini
International Journal of Learning and Intellectual Capital (IJLIC), Vol. 12, No. 1, 2015
Abstract: It is widely acknowledged that innovation is one of the pillars of multinational enterprises (MNEs) and that technological knowledge from different host locations is a key factor to the MNEs' competitive advantages development. Concerning these assumptions, in this paper we aim to understand how the social and the relational contexts affect the conventional and reverse transfer of innovation from MNEs' subsidiaries hosted in emerging markets. We analysed the social context through the institutional profile (CIP) level and the relational context through trust and integration levels utilising a survey sent to 172 foreign subsidiaries located in Brazil, as well as secondary data. Through an ordinary least squares (OLS) regression analysis we found that the relational context affects the conventional and reverse innovation transfer in subsidiaries hosted in emerging markets. We however did not find support for the social context effect.
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