Building on network theory, this study investigates knowledge development in subsidiaries in the knowledge-intensive business service (KIBS) sector. Foreign subsidiaries’ internal and external networks are divided into three main categories: relations with (1) the local environment (external...

Knowledge-based and network-based activities are known determinants of foreign subsidiary influence. We demonstrate that the interaction between these factors is essential in understanding how subsidiaries gain influence within an MNC. We test this using data on 184 foreign-owned subsidiaries in...