Relational Mechanisms , Formal Contracts , and Local Knowledge Acquisition by International Subsidiaries

  title={Relational Mechanisms , Formal Contracts , and Local Knowledge Acquisition by International Subsidiaries},
  author={LI JULIEJUAN and Laura Poppo and Kevin Zheng Zhou},
This research focuses on relational and contractual mechanisms and examines their impact on foreign subsidiaries’ acquisition of tacit and explicit knowledge from local suppliers. Using survey data from 168 foreign subsidiaries operating in China, this study finds broad support for the proposed analytical framework. When the foreign subsidiary and supplier share common goals, the foreign subsidiary acquires greater levels of both explicit and tacit knowledge; trust between the two parties… CONTINUE READING
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