The knowledge-based view suggests that the firm is an institution specializing in knowledge integration. In recent years, MNEs are undergoing a drastic shift towards the “global factory” scenario, and sourcing knowledge globally through the network of their overseas subsidiaries. However, knowledge transferring and integrating are challenging even within an organization. In this study, we investigate whether and how an MNE’s Industry 4.0 orientation, which engenders intraorganizational linkages, can facilitate overseas subsidiaries in overcoming barriers in global knowledge sourcing. We also identify two characteristic variables — MNE age and entry mode — moderating the association between an MNE’s Industry 4.0 orientation and subsidiaries’ global knowledge sourcing. We test the proposed model using a unique dataset comprising 1201 patents from 156 overseas subsidiaries from 2012 to 2023. The results show that an MNE’s Industry 4.0 orientation leads to a more extensive global knowledge sourcing by overseas subsidiaries. Furthermore, the relationship is weakened when the MNE age is higher, while it is stronger for international joint ventures (IJVs) than for wholly-owned subsidiaries (WOSs). This study concludes by discussing the theoretical and managerial implications.
