Browsing Research documents by Author "Pedersen, Torben"
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Geisler Asmussen, Christian; Pedersen, Torben; Petersen, Bent (København, 2005)[More information][Less information]
Abstract: The IB literature informs us of several ways to measure firms’ degree of internationalization. In this paper we make the argument that in fact none of the existing indices really measure firms’ degree of "global specialization", that is, to what extent their allocation of resources is multidomestic or global. As argued, all the existing measures may gauge a purely multidomestic firm as having a high degree of internationalization, whereas a truly global firm may be ranked low. In order to remedy this we introduce a complementary index measuring how firms are configuring their value chains – whether they are replicating value chain activities from country to country or locating them in globally specialized units in order to exploit an international division of labor. In addition to mathematical modeling and numerical examples, we examine the relevance of the new index of global specialization on data of Danish MNCs by looking at the correlation between the new global specialization index and existing indices of firms’ degree of internationalization. We find that the index is able to identify a distinct group of firms with significantly higher degrees of global value chain configuration. Key words: Internationalization, value chain, global configuration. JEL Codes: F02, F23, L22, L23 URI: http://hdl.handle.net/10398/7480 Files in this item: 1
cbs forskningsindberetning smg 27.pdf (650.3Kb) -
the role of absorptive capacityMahnke, Volker; Pedersen, Torben; Venzin, Markus (København, 2003)[More information][Less information]
Abstract: Empirical studies on the impact of knowledge management on the performance of MNC subsidiaries remain elusive to date. This study examines the effect of knowledge management tools such as corporate university, communities of practice, group benchmarking, learning systems and rewards upon absorptive capacity and performance with unique data from subsidiary units in a large German MNC – Heidelberger Cement. The findings suggest that knowledge management tools unfold their performance impact through their significant influence on absorptive capacity and knowledge inflows. The key contributions to the current literature on knowledge flows in the MNC include an empirically corroborated link between deployments of knowledge management tools and their impact on the subsidiary employee’s ability and motivation to learn from internal knowledge flows in the MNC as well as their impact on subsidiary business performance. URI: http://hdl.handle.net/10398/6495 Files in this item: 1
01-2004-3.pdf (471.2Kb) -
the role of absorptive capacityMahnke, Volker; Pedersen, Torben; Venzin, Markus (København, 2003)[More information][Less information]
Abstract: Empirical studies on the impact of knowledge management on the performance of MNC subsidiaries remain elusive to date. This study examines the effect of knowledge management tools such as corporate university, communities of practice, group benchmarking, learning systems and rewards upon absorptive capacity and performance with unique data from subsidiary units in a large German MNC – Heidelberger Cement. The findings suggest that knowledge management tools unfold their performance impact through their significant influence on absorptive capacity and knowledge inflows. The key contributions to the current literature on knowledge flows in the MNC include an empirically corroborated link between deployments of knowledge management tools and their impact on the subsidiary employee’s ability and motivation to learn from internal knowledge flows in the MNC as well as their impact on subsidiary business performance. URI: http://hdl.handle.net/10398/7294 Files in this item: 1
impact of knowledge.pdf (142.8Kb) -
a latent class estimationPedersen, Torben; Soo, Christine; Devinney, Timothy M. (København, 2002)[More information][Less information]
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An Organizational Trade-OffGammelgaard, Jens; Pedersen, Torben (København, 2003)[More information][Less information]
Abstract: When building up competences, a subsidiary of a multinational corporation (MNC) may rely on external knowledge sources like customers, suppliers, competitors or local science centers. Internal sourcing is also available through knowledge offered by headquarters or other affiliates. The question is whether the two kinds of sources are mutual exclusive. A dilemma or organizational trade-off is foreseeable, since the more the subsidiary adapts its knowledge creation processes to host country institutions, the less it will be able to utilize internal knowledge sources due to the institutional distance between the external and internal networks. However, newer organizational forms, like the concept of the "differentiated MNC", imply a relatively smooth flow of knowledge inside the MNC, indicating that we should not expect an organizational trade-off between internal and external sources. The subsidiary’s ability to build on two knowledge networks depends on its scale of resources, absorptive capacity and the role it plays in the corporation. The relationship between internal and external sourcing is tested using a unique dataset that covers more than 2,000 subsidiaries located in seven different European countries (the Centre of Excellence Project). In fact, the results show that, to a certain extent, there is no dilemma between a subsidiary’s knowledge development based on both internal, and external knowledge sources. However, the results also show a bell-shaped relationship between the use of internal and external sources, where a heavily embedded use of internal sources excludes the use of external sources. Keywords: Internal sourcing, External sourcing, Institutional Isomorphism and Subsidiary knowledge. URI: http://hdl.handle.net/10398/7315 Files in this item: 1
internal versus external.pdf (69.42Kb) -
gradual learning or discrete rational choicesPedersen, Torben (København, 1999)[More information][Less information]
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The 'Big Step' HypothesesPedersen, Torben; Shaver, J. Myles (København, 2000)[More information][Less information]
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Beugelsdijk, Sjoerd; Pedersen, Torben; Petersen, Bent (København, 2008)[More information][Less information]
Abstract: In this study we discuss and empirically test the assertion that over the last two decades multinational enterprises’ (MNEs’) configuration of value-adding activities has shifted from a sparse and simple (host-home) international division of labor among the foreign affiliates to a more specialized and ‘advanced’ global value chain configuration in which MNEs locate finesliced parts of the value chain at the most efficient locations. Using data on trade flows of U.S. affiliates in 56 host countries between 1983 and 2003 we find some indications of a trend in the direction of global value chain specialization. In particular among US affiliates in developing countries the proportion of host-host, intra-firm trade has increased significantly during the observed period of time. Conversely, the proportion of host-home and inter-firm trade has diminished. We interpret this as indicating both value chain disaggregation (vertical specialization) and MNEs’ systematic exploitation of factor cost differentials across countries. We also find that the absolute levels of all types of trade flows have increased. Hence, it is the relative, and not the absolute, changes in the trade flow patterns of US affiliates that gives credibility to the global value chain assertion. URI: http://hdl.handle.net/10398/7423 Files in this item: 1
smg wp 2008-24.pdf (286.7Kb) -
The Case of Knowledge about Foreign EntryLyles, Marjorie; Pedersen, Torben; Petersen, Bent (København, 2003)[More information][Less information]
Abstract: The study explores what factors influence the reduction of managers’ perceived knowledge gaps in the context of the environments of foreign markets. Potential determinants are derived from traditional internationalization theory as well as organizational learning theory, including the concept of absorptive capacity. Building on these literature streams a conceptual model is developed and tested on a set of primary data of Danish firms and their foreign market operations. The empirical study suggests that the factors that pertain to the absorptive capacity concept – capabilities of recognizing, assimilating, and utilizing knowledge - are crucial determinants of knowledge gap elimination. In contrast, the two factors deemed essential in traditional internationalization process theory – elapsed time of operations and experiential learning – are found to have no or limited effect. Key words: Internationalization, knowledge gap, absorptive capacity, learning box. URI: http://hdl.handle.net/10398/7302 Files in this item: 1
knowledge gaps.pdf (105.5Kb) -
Pedersen, Torben; Petersen, Bent; Sharma, Deo (, 2003)[More information][Less information]
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Are Entrant Firms Exposed to a 'Shock Effect'?Pedersen, Torben; Petersen, Bent (København, 2003)[More information][Less information]
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From Cost Reduction to Knowledge SeekingMaskell, Peter; Pedersen, Torben; Petersen, Bent; Dick-Nielsen, Jens (Frederiksberg, 2005)[More information][Less information]
Abstract: A corporation’s offshore outsourcing may be seen as the result of a discrete, strategic decision taken in response to an increasing pressure from worldwide competition. However, empirical evidence of a representative cross-sector sample of international Danish firms indicates that offshore sourcing in low-cost countries is best described as a learning-by-doing process in which the offshore outsourcing of a corporation goes through a sequence of stages towards sourcing for innovation. Initially, a corporation’s outsourcing is driven by a desire for cost minimization. Over a period of time the outsourcing experience lessens the cognitive limitations of decision-makers as to the advantages that can be achieved through outsourcing in low-cost countries: the insourcer/vendor may not only offer cost advantages, but also quality improvement and innovation. The quality improvements that offshore outsourcing may bring about evoke a realization in the corporation that even innovative processes can be outsourced. URI: http://hdl.handle.net/10398/7885 Files in this item: 1
DRUID_05_17.pdf (115.1Kb) -
Pedersen, Torben; Sharma, Deo; Petersen, Bent (København, 2001)[More information][Less information]
Abstract: This large-scale study explores the performance implications of different combinations of knowledge sourcing and transfer mechanisms of multinational corporations (MNCs). The focus is on transfer of internationalization knowledge. After having acquired knowledge in foreign markets, the MNCs face a choice as to the mechanism used for transferring this knowledge to other units of the corporation. MNCs can use "rich communication media" that are able to transfer experiential knowledge as acquired originally. Alternatively, the MNCs may aim to codify the knowledge in written media in order to transfer it to other units. A wrong choice of transfer mechanism may result in unnecessarily high communication costs or impaired quality of the knowledge subject to transfer. On the basis of data on Danish MNCs the performance implications of the transfer mechanism choice is examined. URI: http://hdl.handle.net/10398/6890 Files in this item: 1
linkwp01-6.pdf (177.2Kb) -
subsidiary technology embeddedness and performanceAndersson, Ulf; Forsgren, Mats; Pedersen, Torben (København, 1999)[More information][Less information]
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the roles of knowledge sources and organizational instruments for knowledge creation and transferFoss, Nicolai Juul; Pedersen, Torben (København, 2001)[More information][Less information]
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The Roles of Knowledge Sources and Organizational Instruments in MNC Knowledge ManagementFoss, Nicolai J; Pedersen, Torben (København, 2003)[More information][Less information]
Abstract: Recent research on the differentiated MNC has concerned knowledge flows between MNC units. While linking up with this literature, we extend in two directions. First, we argue that conceptualizing the MNC as a knowledge structure furthers the understanding of intra-MNC knowledge flows. Thus, we see MNC knowledge elements as being structured along such dimensions as their type and degree of complementarity to other knowledge elements, and their sources, for example, whether they are mainly developed from external or internal knowledge sources. These dimensions matter in terms of knowledge flows, because they influence the costs and benefits of knowledge transfer and, hence, the actual level of knowledge transferred. Second, based on this conceptualization, we argue that MNC management can influence the development, characteristics and transfer of knowledge through choices regarding organizational instruments (control, motivation and context). We test six hypotheses derived from these arguments against a unique dataset on subsidiary knowledge development. The dataset includes information on organizational instruments, sources of subsidiary knowledge, and the extent of knowledge transfer to other MNC units. It covers more than 2,000 subsidiaries located in seven different European countries. URI: http://hdl.handle.net/10398/7317 Files in this item: 1
03-09.pdf (594.9Kb) -
Björkman, Ingmar; Fey, Carl F.; Minbaeva, Dana; Park, Hyeon Jeong; Pedersen, Torben (København, 2002)[More information][Less information]
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Minbaeva, Dana; Pedersen, Torben; Björkman, Ingmar; Fey, Carl F.; Park, H.J. (København, 2001)[More information][Less information]
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Hansen, Michael W.; Pedersen, Torben; Petersen, Bent (København, 2007)[More information][Less information]
Abstract: The paper addresses the question of which implications MNC strategies have to FDI linkage effects in developing countries. Two contrasting MNC strategies reflecting an integration-responsiveness dichotomy are scrutinized as to their job effects on local linkage partners in developing countries. It is hypothesized that compared to investments undertaken by MNCs following strategies of global integration, investments of MNCs pursuing local responsiveness create more jobs but imply less job upgrading in developing countries. The hypotheses are tested on a sample of Danish MNCs with extensive investments in developing countries. URI: http://hdl.handle.net/10398/7468 Files in this item: 1
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the internationalization pattern of large companies from Denmark, Finland and NorwayBenito, Gabriel R.G.; Larimo, Jorma; Narula, Rajneesh; Pedersen, Torben (København, 2001)[More information][Less information]
Abstract: Analyzing the internationalization of large companies from small countries requires understanding the process of internationalization by examining the interface between micro (firm strategies) and macro (the forces of centripetal and centrifugal) level factors. We examine the growth and international expansion of the ten largest companies in Denmark, Finland, and Norway over the period 1990 to 1999. Most companies in the sample became more international during the last decade across basically all the investigated dimensions of internationalization. This was particularly accentuated in the case of Norwegian firms, possibly due to their lower degree of internationalization at the beginning of the period. The study also shows that companies mainly have internationalized their operations activities, while such strategic activities as research and development activities and headquarters functions to a much larger extent are kept in the home country. URI: http://hdl.handle.net/10398/6586 Files in this item: 1
linkwp02-04.pdf (217.4Kb)