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Tapping the power of local knowledge: a local-global interactive perspective

Research output: Contribution to journalJournal article

<mark>Journal publication date</mark>06/2016
<mark>Journal</mark>Journal of World Business
Issue number4
Number of pages13
Pages (from-to)641-653
Publication StatusPublished
Early online date23/04/16
<mark>Original language</mark>English


Existing theories of international business and strategy do not fully explain how local knowledge disadvantage faced by foreign investors can be mitigated. We conducted an in-depth qualitative study into four MNCs to investigate the micro-processes of how they generated value from their dispersed sources of local knowledge in China. The results suggest an interactive model: that MNCs employed management processes encompassing three strategically interconnected efforts—global knowledge penetration, local-global knowledge blending, and local-global knowledge integration. The model highlights the interplay between global and local knowledge and challenges extant research that solely focuses on the transfer of either home-based or local knowledge.