Authors: Iiris Hilvo; Joanna Scott-Kennel
In this paper we examine whether MNEs are, or can be, embedded in both inter-organizational and intra-organizational business relationships.As part of our research, we also examine the antecedents of this‘dual organizational embeddedness’, namely thelocal institutional environmentand absorptive capacity. Finally, we examine whether foreign MNEs or solely domestic companies are more dually embedded in inter- and intra-organizational businessrelationships. The context of our study is the small, open economy. We used a survey instrument tocollect data from the largest 500 firms operating in Finland and in New Zealand, receiving a total of 264 responses.Our findings suggest dual embeddedness is difficult to achieve and, hence, units are likely to be more embedded ineither inter- or intra-organizational business relationships. We also find that the antecedents vary for inter- and intra-organizational business relationships, and only local suppliers arerelated with dual organizational embeddedness New Zealand.Most importantly, MNE units with high R&D spending are more likely to be embedded in inter-organizational business relationships in both countries. Comparison of solely domestic companies and MNEs indicates no difference in terms of being embedded inter-organizational networks. Hence, despite MNE’s superior capacity to manage and transfer knowledge, we do not find evidence of MNEs being superior sources of resources to local actors.
Journal: n.a. (n.a. – n.a.)
Web Address: n.a.
Publish Year: 2012
Conference: Rome, Italy (2012)