Effect of Internal Knowledge Sourcing on MNEs Subsidiaries’ Service Innovation Performance. The Role of Exploitative Learning and Entrepreneurial Orientation

Abstract

This study assessed the influence of internal knowledge sourcing on MNEs subsidiaries’ service innovation performance. It also considered the moderating role of entrepreneurial orientation, as well as the mediating role of exploitative learning. Empirical analysis was based on primary data gathered from 156 MNE subsidiaries. Various validity and reliability checks were conducted before the presentation of the actual analysis, which was conducted using Ordinary Least Squares approach, run using SPSS (v. 20). Findings indicate that, exploitative learning partially mediates the relationship between internal knowledge sourcing and MNE subsidiaries’ service innovation performance. Entrepreneurial orientation however, dampens the positive relationship between internal knowledge sourcing and exploitative learning. This study adds to the existing debate in the arena of knowledge-based view of the firm.