Abstract
The extant research of cross-border knowledge acquisition by multinational enterprises often assumes away the role of local contexts within which knowledge acquisition occurs. To extend this line of research, this study contextualizes the knowledge search by foreign subsidiary executives to examine the contingency value of social ties. The results based on the multilevel analyses of both micro (433 dyad ties) and macro effects of the regional knowledge environment (26 provinces) provide support for the hypotheses that, though close social ties facilitated knowledge search as predicted by social capital theory, the utility value of social ties for knowledge search tends to be attenuated in the regions with high level of social capital and FDI density.
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