Knowledge sharing dynamics in international subcontracting arrangements: The case of Finnish high-tech SMEs

Petri Ahokangas,Zaheer Khan,Lauri Haapanen,Ahmad Arslan,Minnie Kontkanen,Ismail Golgeci

doi:10.1016/j.intman.2021.100888

Petri Ahokangas, Zaheer Khan + Show 4 more

Open Access

https://doi.org/10.1016/j.intman.2021.100888

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Abstract

This paper focuses on an under-researched topic of knowledge sharing dynamics in international subcontracting relationships of SMEs. Based on in-depth qualitative analysis of three Finnish high-tech firms, our findings reveal that not only cost and performance expectations motivate SMEs for international subcontracting, but also the factors like lack of in-house alternatives, the volatility of workload, and need for speed in growth-related activities such as deliveries play an important role. We further found that the SMEs try to balance internal risks/uncertainty and external risks/uncertainty throughout international subcontracting. Our paper contributes to the extant literature by being one of the first studies to specifically highlight the range of knowledge sharing and knowledge protection mechanisms used in international subcontracting in SME-SME relationships in which partners come from different institutional settings and physical locations. Moreover, this paper is one of the few studies to specifically highlight the role of time in knowledge sharing from the buyer's point of view as well, specifically by emphasizing the need to balance the internal and external risks during the life-cycle of international subcontracting while balancing short-term challenges and long-term strategic development plans.

Highlights

Knowledge transfer within firms, between firms, and in international networks is an extensively researched phenomenon in management studies
Emergent themes are presented according to the paper's aims as they emerged from the data by starting with international subcontracting motives (Chapter 4.1) and continued with analyzing the content of what is subcontracted, core, or non-core activities (Chapter 4.2)
This serves as a starting point for analyzing the mechanisms of knowledge sharing and control (Chapter 4.3) in international subcontracting activities and characterizing the international subcontracting context (Chapter 4.4.) and its influence on the activities

Summary

Introduction

Between firms, and in international networks is an extensively researched phenomenon in management studies. There is substantial literature on knowledge transfer within multinational enterprises (MNEs) in the interna tional context, exploring the direction of knowledge flows, as well as types, effectiveness, and efficiency of knowledge transfer, among others (Zeng et al, 2018). This stream of literature has increased our understanding of the extent and type of knowledge flows from headquarters (HQs) to subsidiaries, from subsidiaries to HQs (reverse knowledge transfer), between subsidiaries (lateral knowledge transfer) (Rabbiosi, 2011; Mudambi et al, 2014), and the challenges that international context imposes on knowledge transfer effi ciency (Gaur et al, 2019). The structural approach focuses on the influence of governance structure on facilitating learning, and the process approach concentrates on learning in different stages of relationships and mechanisms facilitating learning and knowledge transfer (Yang et al, 2014)

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