Intra-MNE advantage transfer and subsidiary innovativeness: The moderating effect of international diversification

Abstract

This study focuses on multinational enterprise (MNE) advantage transfer and focuses on the new trend about subsidiary innovativeness. This study explores the intra-MNE advantage transfer from parent companies to their subsidiaries and the effect on innovativeness and performance of foreign subsidiaries, and further examines the moderating effect of the international diversification. The empirical results support the existence of an invert-U relationship between intra-MNE advantage transfer and subsidiary performance. In addition, findings support the moderating effect of international diversification of intra-MNE advantage transfer on subsidiary innovativeness and performance.