Abstract
This paper contributes to the debate on the influence of knowledge sourcing in emerging markets by multinational enterprises. The study builds on transaction cost theory, organizational learning theory and the knowledge-based view to examine the determinants and consequences of knowledge mobility in cross-border buyer-supplier relationships. I hypothesize that protection and knowledge attributes influence knowledge acquisition from international strategic alliances and that knowledge mobility enhances local suppliers’ innovation capabilities. Using survey data of 160 firms in the information technology (IT) sector and a structural equation methodology, the empirical results indicate the positive impact that knowledge attributes have on protection. Furthermore, knowledge mobility in cross-border relationships positively affects the development of firms’ innovation capabilities. The implications are discussed at the end of the paper.
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