EXTERNAL KNOWLEDGE SOURCING AND MNES’ SUBSIDIARIES SERVICE INNOVATION PERFORMANCE: THE ROLE OF ENTREPRENEURIAL ORIENTATION AND EXPLORATORY LEARNING.

International Journal of Innovation Management, Ahead of Print.
This study assessed the influence of external knowledge sourcing on multinational enterprises’ (MNEs) subsidiaries service innovation performance. It also considered the moderating role of entrepreneurial orientation, as well as the mediating role of exploratory learning. Empirical analysis was based on primary data gathered from 156 MNEs’ subsidiaries. Various validity and reliability checks were conducted before the presentation of the actual analysis, which was conducted using ordinary least squares approach, run using SPSS (v. 20). Findings indicate that exploratory learning fully mediates the relationship between external knowledge sourcing and MNEs’ subsidiaries service innovation performance. Entrepreneurial orientation was also found to moderate the relationship between external knowledge sourcing and exploratory learning. This study adds to the existing debate in the arena of resource-based theory.