Abstract
This study adds to the literature on business ecosystems and knowledge management by examining managerial ties as contingency factors. We suggest that managerial ties can be symbiotic (resources) or parasitic (constraints) to a foreign firm. We support our contention with evidence from Korean subsidiaries in China. We find that domestic political ties strengthen the effect of headquarters' knowledge transfer on performance. On the other hand, business ties are a double-edged sword, strengthening the performance impact of local knowledge acquisition while weakening that of headquarters' knowledge transfer.
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