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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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