Emerging centres of excellence: Knowledge-sharing between developing country firms and their subsidiaries in the developed world
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This paper investigates how developing country firms with generally less developed capability bases than their counterparts from the developed world can benefit from their location in the technologically more advanced developed world. It documents that subsidiaries in more developed countries do act as centres of excellence for their firm, but that their role as such centres of excellence is still emerging, and characterised by less formal, less optimal knowledge sharing mechanisms. In addition, firms learn more if they are more similar (whether seen in terms of industrial competitiveness or institutional infrastructure) to their host country. The paper follows the traditional format: The theoretical model is discussed, hypotheses derived, and the methodology explained. The paper ends with a presentation and discussion of results, and a conclusion with suggestions for further research.