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Learning from Older Siblings: Impact On Subsidiary Performance

Lookup NU author(s): Dr Garima GargORCiD, Dr Mayank SewakORCiD

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Abstract

Newer subsidiaries of a multinational enterprise (MNE) in a foreign (host) country will rarely possess theknowledge required for its performance. As such, a newer subsidiary will learn vicariously from the experiencesof older subsidiaries of similar industries and the same MNE operating in the same host country. In particular, thenewer subsidiary will learn two types of knowledge from older subsidiaries, namely, operational knowledgerelated to their experiences in the host country and their knowledge about local markets. Furthermore, wetheorize that higher parent MNE ownership in newer subsidiaries will facilitate vicarious learning. We add thatas newer subsidiaries gain experience, they become less dependent on vicarious learning from older subsidiaries.We find support for our hypotheses using a longitudinal sample of MNE subsidiaries in India. We conclude withimplications for future research.

Publication metadata

Author(s): Garg G, Sewak M, Sharma A

Publication type: Article

Publication status: Published

Journal: International Business Review

Year: 2022

Volume: 31

Issue: 3

Print publication date: 01/06/2022

Online publication date: 07/12/2021

Acceptance date: 24/11/2021

Date deposited: 12/02/2022

ISSN (print): 0969-5931

ISSN (electronic): 1873-6149

Publisher: Elsevier

URL: https://doi.org/10.1016/j.ibusrev.2021.101957

DOI: 10.1016/j.ibusrev.2021.101957

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