Knowledge Development and Transfer in Foreign Subsidiaries and Their Parent Transnational Corporations

Abstract

The article aims at analysis of knowledge-oriented growth of TNCs' foreign subsidiaries, their transformation and evolving participation in knowledge development by parent transnational corporations (TNCs). The author's concept of increasing involvement of foreign subsidiaries in leveraging knowledge in TNCs' organizations is presented with a focus on a new process of “creative transition” by corporate foreign subsidiaries and its implications for the parents and host economies. The research method is based on integration of concepts, elements and instruments used in international management and international business to investigate the evolution of the knowledge development process in TNCs' cross-border organizations.

Keywords

• foreign subsidiaries
• transnational corporations
• knowledge
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