This study examines the innovation performance of Multilatinas. More specifically, the interplay between internal embeddedness, reverse knowledge transfer (RKT) and subsidiary autonomy delegation toward innovation performance.
We draw upon network theory to bring RKT as a mediator in the link between internal embeddedness and innovation performance. In addition, we propose the mediation effect is moderated by subsidiary autonomy delegation. Partial least squares structural equation modeling (SEM) is used to analyze a sample of 92 Multilatinas.
Our results indicate that RKT is a partial mediator between internal embeddedness and innovation performance. In addition, delegating autonomy towards subsidiaries located in developed markets is a key strategic mechanism to strengthen the performance effects of internal embeddedness and knowledge transfer activities.
This study advances the multilatinas literature by examining how internationalization activities in developed markets enable headquarters to compete in global innovation sectors. Additionally, this study advances the broader emerging market multinational enterprise (EMNE) literature by examining the roles of RKT and subsidiary autonomy in the innovation process.
