Template-type: ReDif-Paper 1.0
Author-Name: Collinson S. 
Author-Name: Narula R. 
Author-workplace-name: UNU-MERIT
Title: Asset recombination in international partnerships as a source of improved innovation capabilities in China
Abstract: This paper examines how multinational enterprises MNEs and local  partners, including suppliers, customers and competitors in China,  improve their innovation capabilities through collaboration. We analyse  this collaboration as a three-way interaction between the  ownership-specific O advantages or firm-specific assets FSAs of the  MNE subsidiary, the FSAs of the local partner, and the location-specific  assets of the host location. Our propositions are examined through a  survey of 320 firms, supplemented with 30 in-depth case studies. We find  that the recombination of asset-type Oa FSAs and transaction-type Ot  FSAs from both partners leads to new innovation-related ownership  advantages, or recombinant advantages. The study reveals important  patterns of reciprocal transfer, sharing and integration for different  asset categories tacit, codified and different forms of FSA and  explicitly links these to different innovation performance outcomes. Ot  FSAs, in the form of access to local suppliers, customers or government  networks are particularly important for reducing the liability of  foreignness for MNEs.
Keywords: Multinational Firms; International Business; Globalization: Policy; Management of Technological Innovation and R&D; 
Classification-JEL: F23; F68; O32; .
Series:  Working Papers
Creation-Date: 2014
Number: 061
File-URL: http://pub.maastrichtuniversity.nl/7aae461d-9ad3-4fda-87b6-eae58d78335a
File-Format: application/pdf
File-Size: 609235
Handle: RePEc:unm:unumer:2014061