The Impact of Entry Mode on Outward Knowledge Transfer in MNCs: International Greenfield Investments and Acquisitions

UNCG Author/Contributor (non-UNCG co-authors, if there are any, appear on document)
Dr.. Riikka M. Sarala, Professor of International Business (Creator)
The University of North Carolina at Greensboro (UNCG )
Web Site:

Abstract: Despite of the acknowledged individual importance of both entry mode and knowledge transfer, the interaction between these two issues has rarely been studied. In this paper we set out to examine the impact of entry mode, i.e. greenfield investments and acquisitions, on outward knowledge transfer from a subsidiary unit to other parts of the MNC. Additionally, we explore the impact of time elapsed on outward knowledge transfer. We test our hypotheses on a sample of 159 western majority owned subsidiaries located in Finland and China. The results of our study suggest that outward knowledge transfer is greater in subsidiaries established through acquisition than through greenfield investment. We also find that outward knowledge transfer increases with time both in acquisitions and greenfield investments although the underlying reasons for the increase are likely to differ across entry modes.

Additional Information

Finnish Journal of Business Economics, 4, 510-530
Language: English
Date: 2005
knowledge transfer, entry mode, MNC, greenfield investment, acquisition

Email this document to