Multinational strategy, institutions and spillovers: the role of institutions in knowledge spillovers in emerging markets

Bhaumik, S., Driffield, N. ORCID: https://orcid.org/0000-0002-0078-4525, Lavoratori, K. ORCID: https://orcid.org/0000-0002-0078-4525, Song, M. and Vahter, P. (2025) Multinational strategy, institutions and spillovers: the role of institutions in knowledge spillovers in emerging markets. Journal of Technology Transfer. ISSN 1573-7047 doi: 10.1007/s10961-025-10230-w

Abstract/Summary

This paper delves into the pivotal role of institutions in facilitating knowledge spillovers, particularly in the context of multinational enterprises (MNEs) and knowledge transfer. While extant literature highlights the positive correlation between good institutional quality and knowledge transfer, this paper introduces a nuanced perspective. It argues for an inverted U-shaped relationship, suggesting that MNEs may exhibit reluctance in knowledge transfer to subsidiaries not only in environments with low institutional quality, as conventionally discussed, but also in those characterized by high institutional quality. In fact, there are beneficial implications of good institutions for domestic firms as well, enabling greater capacity to absorb knowledge and thereby emerge as competitors of MNEs. The paper demonstrates an inverted U-shaped relationship between spillovers, to capture knowledge transfer, and the quality of local institutions. This study provides valuable insights into the complex dynamics of knowledge spillovers, emphasizing the multifaceted influence of institutional environments on knowledge dissemination and economic development.

Item Type	Article
URI	https://centaur.reading.ac.uk/id/eprint/122850
Identification Number/DOI	10.1007/s10961-025-10230-w
Refereed	Yes
Divisions	Henley Business School > International Business and Strategy
Publisher	Springer
Download/View statistics	View download statistics for this item