The evolution of knowledge transfer and the location of a multinational corporation: theory and mathematical model

• Autores: Dorota Leszczynska, Erick Pruchnicki
• Localización: The Multinational Business Review, ISSN 1525-383X, ISSN-e 2054-1686, Vol. 23, Nº. 2, 2015, págs. 111-129
• Idioma: inglés
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• Resumen

  • Purpose The present article draws attention to the link between knowledge transfer flow and the location of a multinational corporation.

    Design/methodology/approach We put forward a conceptual approach to formulate the mathematical modelling of a firm�s performance following the decision to join a regional cluster. Our model builds on a recent stream of theoretical literature which has investigated the relationship between networks and the creation and diffusion of knowledge. The purpose of this model is to propose a mathematical tool to determine the long-term financial results induced by knowledge transfer from an MNC�s acquired subsidiary located in a cluster to another part of the MNC.

    Findings Our study has several important research implications. First, it is a useful step toward a better understanding of how knowledge transfer effects may interact with cluster effects, while explaining subsidiary location performance. Second, it focuses on the most valuable, often highly tacit knowledge competencies.

    Research limitations/implications Other investigations would certainly be welcome to improve the links between the proposed mathematical model and the efficiency of the location of an MNC in a cluster through a quantitative study.

    Practical implications We constructed our study with the aim of developing a model that would give us a better understanding of the impact of embedded knowledge on the efficiency of a localization choice made by an MNC.

    Originality/value To date, there has been little in the literature on the profit arising from a multinational firm�s choice of location.