This study uses structural equation modeling to examine the relationships between subsidiary management strategies, inward and outward collaborations, and knowledge creation in emerging markets. These relationships were tested using survey data from 118 Japanese multinational corporations (MNCs) based in Asia. The results revealed a significant influence process model as follows: autonomy → outward collaboration in the local environment → knowledge creation in emerging market subsidiaries. Thus, autonomy, one of the most important subsidiary management strategies, was positively related to knowledge creation in emerging markets. Conversely, although socialization had a positive impact on inward collaboration between the MNCs, the strategy had no direct impact on knowledge creation. Furthermore, inward collaborations within the MNCs negatively influenced knowledge creation. These findings provide insights on the conflicting views emerging from previous studies on the relationship between subsidiary socialization and knowledge creation.
