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LongRangenning47(2014)4–15

ContentslistsavailableatScienceDirect

LongRangenning

journalhomepage:

ExploringtheParadoxofCompetence-creatingSubsidiaries:

BalancingBandwidthandDispersioninMNEs

RajneeshNarula

ThispaperseekstosynthesisethevariouscontributionstothespecialissueofLongRangenningoncompetencecreatingsubsidiaries

(CCS),andidentifiesavenuesforfutureresearch.Effectivecompetencecreationthroughworkofsubsidiariesrequiresanappropriate

balancweeninternalandexternalembeddedness.Therearemultipletypesoffirmspecificadvantages(FSAs)essentialtoachieve

this.Inaddition,widebandwidthpathwaysareneededwithcollaborators,rs,customersaswellasinternallywithintheMNE.

Paradoxically,thereisanaturaltendencyforbandwidthtoshrinkasdispersionincreases.Asdistances(technological,organisational,and

physical)becomegreater,theremaybedecreasingreturnstoRDspread.Greaterresourcesforknowledgeintegrationandcoordination

areneededasintraMNEandinterfirmRDcooperationbecomesmoreintensiveandextensive.MNEsneedtoinvestinmechanismsto

promotewidebandwidtowledgeflows,withoutwhichwidelydispersedanworkedMNEscansufferfrominternalmarket

failures.

2013Elsevier.s.

Introduction

MNEshavebecomeincreasinglyknowledgedriven,andgrowingcrossbordercompetitionhasledmanytoseekand

developknowledgeassetsthroughawidervarietyofmeans.Competencesareincreasinglydevelopedatthesubsidiarylevel



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