Abstract
Recent theory has emphasized the exchange of knowledge between subsidiaries as a feature of the modern multinational. We revisit the empirical validity of this characterization. Mapping knowledge sources of a sample of 310 subsidiaries of foreign multinationals operating in Singapore, we examine the relative importance of knowledge flows between headquarters, sister subsidiaries, and external parties. We also examine how these relativities vary across three different subsidiary roles: implementation, innovation for local market, and innovation for international markets. We find that direct flows of knowledge between sister subsidiaries play a minimal role. Instead, our evidence suggests subsidiaries tap into a variety of external knowledge sources dependent on their roles, while internal knowledge flows are perhaps mediated by headquarters, in contrast to the network model of MNCs.