Search Strategy for External Knowledge of Advanced and Developing Countries MNEs' Subsidiaries in Spain

Abstract

This paper examines how the search strategy for external knowledge differs between domestic companies and foreign subsidiaries from advanced and developing countries in Spain. We argue that asymmetries in terms of the technological activities of the MNE in its home country and those of the host country translate into different search strategies for external knowledge. The results show that developing countries subsidiaries draw upon more external knowledge sources than advanced countries subsidiaries; while both types of firms have a less intensive search strategy than domestic firms. Results also indicate that affiliated domestic companies draw upon more knowledge channels than local firms, while both firms use their knowledge sources with the same intensity.