Social Knowledge as a Control System: A Proposition and Evidence from the Japanese FDI Behavior

@article{Sohn1994SocialKA,
  title={Social Knowledge as a Control System: A Proposition and Evidence from the Japanese FDI Behavior},
  author={Jung Hoon Sohn},
  journal={Journal of International Business Studies},
  year={1994},
  volume={25},
  pages={295-324}
}
Building upon the concept of clans, this paper introduces the value of social knowledge as a control mechanism available for an MNC to manage its foreign subsidiaries. Social knowledge is defined as one's ability to understand and predict others' general patterns of behavior. The hypotheses are empirically tested with Japanese FDI data into four host countries, the United States, Singapore, Taiwan, and Korea. The results offer broad support for the proposition that for MNCs with social… CONTINUE READING

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