No 2016/4 The Joint Influencing Mechanism of Proximities and Knowledge Base on Multinational Companies’ Global Innovation Networks

Abstract

This paper explores the joint influencing mechanism of the two-dimensional proximity, namely geographical and organisational proximity, and knowledge base on the relational pattern of multinational companies’ (MNCs) global innovation networks (GINs). It argues when it comes to MNCs’ GINs, the conventional geographical-proximity-and-knowledge-base framework allows only for an incomplete understanding of the network relational patterns and particularly the observed differences between different GINs. The paper suggests an extended theoretical framework based on a two-dimensional proximity concept and the knowledge base approach for understanding how and why MNCs’ GINs are organised in specifically different ways. An in-depth comparative case study with social network analysis is used to illustrate the applicability of the framework in question.