Title: Globalisation or regionalisation of technological knowledge learning in multinational corporations

Authors: Feng Zhang

Addresses: Pennsylvania State University Abington, 1600 Woodland Rd., Abington, 19001 PA, USA

Abstract: This study examines the relationship between a global or regional distribution of technological knowledge learning activities of large multinational corporations (MNCs) and firm performance. This study focuses on explorative and exploitative learning activities of the world's largest MNCs in the electronics and pharmaceutical industries between 1980 and 2018. Herfindahl index is adapted to measure globalisation vs. regionalisation as one continuous variable. We find that the regionalisation of exploration and exploitation are positively associated with firm innovative and financial performance. For innovative performance, the regionalisation of exploration and exploitation is particularly important for pharmaceutical firms. In contrast, the regionalisation of exploitation for electronics firms and the regionalisation of exploration for pharmaceutical firms contribute to firm financial performance. This study contributes to both the MNC and organisational learning literature and offers managerial implications on organising technological competence creating activities in large MNCs.

Keywords: regionalisation; globalisation; geographical distribution; technological knowledge learning; multinational corporations.

DOI: 10.1504/IJTM.2024.137023

International Journal of Technology Management, 2024 Vol.95 No.1/2, pp.196 - 225

Received: 13 Jan 2022
Accepted: 21 Dec 2022
Published online: 01 Mar 2024 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article