From global exploitation to local exploration: Evidence from foreign subsidiaries in China
Speaker: Prof. Jiatao Li (The Hong Kong University of Science and Technology)
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Topic:
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From global exploitation to local exploration: Evidence from foreign subsidiaries in China
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Time&Date:
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15:00-16:15 pm, 2019/10/14 (Monday)
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Venue:
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Room 619, Teaching A
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Speaker:
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Prof. Jiatao Li (The Hong Kong University of Science and Technology)
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Abstract:
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This study investigates the relationship between global exploitation and local exploration of foreign subsidiaries. We first argue that global exploitation helps foreign subsidiaries develop absorptive capacity, which further leads to local exploration in the host country. Next, we point out too much global exploitation could hinder local exploration due to inertia and resource constraints. Therefore, global exploitation and local exploration follow an inverted U-shape relationship. We further consider two moderators of the relationship: headquarter age and cross-national institutional distance between host and home countries. We test the hypotheses using a sample of foreign subsidiaries of large multinationals in China between 2008 and 2016 and find support for our hypotheses.
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