Foreign tacit knowledge and a capabilities perspective on MNEs’ product innovativeness: Examining source-recipient knowledge absorption platforms |
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| Institution: | 1. Department of Marketing, Macquarie University, NSW 2109, Australia;2. Peter Faber Business School, Australian Catholic University, North Sydney, NSW 2060, Australia |
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| Abstract: | This study applies a capabilities perspective to examine how source-recipient knowledge absorption platforms affect the relationship between foreign tacit knowledge resource and multinational enterprises’ (MNEs) product innovativeness. Theoretically, this study moves beyond internal absorptive capacity into a capabilities perspective of MNEs’ product innovativeness. By using dynamic capabilities theory and absorptive capacity to frame source-recipient knowledge absorption platforms as dynamic capabilities, we build a model that enables the continued interaction between the tacit knowledge resource gained from foreign subsidiaries (source) and the focal (recipient) MNEs’ product innovativeness. For managerial implications, we focus on three organizational practices in terms of entrepreneurial competence, relationship harmony, and information communication technology (ICT) competence as potential enhancements to convert foreign tacit knowledge resource into MNEs’ product innovativeness. |
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| Keywords: | Absorptive capacity Dynamic capabilities Entrepreneurial competence ICT competence Knowledge tacitness Multinational subsidiary management Product innovativeness Trust |
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