Addressing dual embeddedness: The roles of absorptive capacity and appropriability mechanisms in subsidiary performance

Research output: Contribution to journalArticle


This study examines how subsidiaries can manage dual embeddedness with both local partners and a multinational enterprise. Specifically, we examine the role of absorptive capacity and appropriability mechanisms on subsidiary performance. We analyse how absorptive capacity and appropriability enable subsidiaries to successfully address knowledge challenges related to internal and external networks. We conducted an empirical analysis on a sample of 165 subsidiaries. Our results suggest that absorptive capacity has a direct, positive effect on subsidiary performance, which is greater in emerging countries. The study also found an indirect effect of absorptive capacity on subsidiary performance, which is mediated through appropriability mechanisms. These findings extend the literature on international networks, dual embeddedness and absorptive capacity.


External organisations
  • Luleå University of Technology
  • University of Vaasa
  • Södertörn University
  • Hanken School of Economics
Research areas and keywords

Subject classification (UKÄ) – MANDATORY

  • Business Administration


  • absorptive capacity, appropriability mechanisms, dual embeddedness, emerging countries
Original languageEnglish
Pages (from-to)239-249
JournalIndustrial Marketing Management
Publication statusPublished - 2019 Apr
Publication categoryResearch
Externally publishedYes