Barriers to Absorptive Capacity and Capability Upgrading in Developing Country Multinationals. / Cuervo-Cazurra, Alvaro ; Rui, Huaichuan.
Proceedings of the 55th Annual Meeting of the Academy of International Business: "Bridging the Divide: Linking IB to Complementary Disciplines and Practice". ed. / Patricia McDougall-Covin; Tunga Kiyak. 2013 Academy of International Business, 2013. p. 263.Research output: Chapter in Book/Report/Conference proceeding › Conference contribution
Barriers to Absorptive Capacity and Capability Upgrading in Developing Country Multinationals. / Cuervo-Cazurra, Alvaro ; Rui, Huaichuan.
Proceedings of the 55th Annual Meeting of the Academy of International Business: "Bridging the Divide: Linking IB to Complementary Disciplines and Practice". ed. / Patricia McDougall-Covin; Tunga Kiyak. 2013 Academy of International Business, 2013. p. 263.Research output: Chapter in Book/Report/Conference proceeding › Conference contribution
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TY - GEN
T1 - Barriers to Absorptive Capacity and Capability Upgrading in Developing Country Multinationals
AU - Cuervo-Cazurra, Alvaro
AU - Rui, Huaichuan
PY - 2013
Y1 - 2013
N2 - We study how barriers to absorptive capacity limit the upgrading of capabilities to international levels by developing country multinational companies (DMNCs). The case of the state-owned Chinese automobile Nanjing Automobile Group reveals additional barriers to absorptive capacity that limit the effective transformation of external knowledge into competitive advantage: not-invented-here biases, whereby employees dismiss external knowledge even if managers recognize its value; management preferences, whereby managers’ biases and career prospects guide the selection of particular knowledge sources; and source relationships, whereby external sources limit the knowledge accessed by the company. These barriers complement other barriers to absorptive capacity discussed in the literature such as appropriability regimes, social integration mechanisms and activation triggers, and provide a more nuanced understanding of absorptive capacity.
AB - We study how barriers to absorptive capacity limit the upgrading of capabilities to international levels by developing country multinational companies (DMNCs). The case of the state-owned Chinese automobile Nanjing Automobile Group reveals additional barriers to absorptive capacity that limit the effective transformation of external knowledge into competitive advantage: not-invented-here biases, whereby employees dismiss external knowledge even if managers recognize its value; management preferences, whereby managers’ biases and career prospects guide the selection of particular knowledge sources; and source relationships, whereby external sources limit the knowledge accessed by the company. These barriers complement other barriers to absorptive capacity discussed in the literature such as appropriability regimes, social integration mechanisms and activation triggers, and provide a more nuanced understanding of absorptive capacity.
M3 - Conference contribution
SP - 263
BT - Proceedings of the 55th Annual Meeting of the Academy of International Business
A2 - McDougall-Covin, Patricia
A2 - Kiyak, Tunga
PB - 2013 Academy of International Business
ER -