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Business and Management.
This research explores the relationship between relative absorptive capacity – a firm‟s proficiency at acquiring, assimilating, transforming and ultimately exploiting knowledge – and subsidiary bargaining power. In building upon the existing dynamic capabilities framework it is advanced that absorptive capacity, as a mediator, serves not only as a valid dynamic capability but also as an enabling mechanism and a vehicle by which subsidiary bargaining power can be achieved. The antecedent factors conducive to building relative absorptive capacity are critically evaluated and built upon in a subsidiary specific context. The contribution of these new factors provides insight into the enabling constructs conducive to building absorptive capacity as a dynamic capability in the subsidiary context and are proffered as; Strategic Posture, Network Inclusion, and Environmental Specific Factors. It is also posited that a subsidiary which is capable of exercising considerable bargaining power can leverage this position by insulating themselves to some extent from the threat of mandate loss.
Reilly, M., Sharkey Scott, P.: Dynamic Capabilities, Absorptive Capacity and Knowledge Sharing: A Research Agenda into Explicating the Antecedent Factors Conducive to Subsidiary Bargaining Power.Academy of International Business (UKI Chapter) Conference Paper, Trinity College Dublin, April, 2010.