No full-text available
To read the full-text of this research,
you can request a copy directly from the authors.
Innovation processes in multinational corporations
... Conducting more and more R&D abroad and splitting up the knowledge creation process over multiple, geographically dispersed units, creates major organizational and managerial challenges (e.g., Bartlett & Ghoshal, 1989;Gassmann, 1997;Ghoshal & Bartlett, 1988;White & Poynter, 1990). To research some of the challenges inherent in managing international R&D activities, the Ghoshal and Bartlett (1988) typology provides a good point of departure. ...
... Conducting more and more R&D abroad and splitting up the knowledge creation process over multiple, geographically dispersed units, creates major organizational and managerial challenges (e.g., Bartlett & Ghoshal, 1989;Gassmann, 1997;Ghoshal & Bartlett, 1988;White & Poynter, 1990). To research some of the challenges inherent in managing international R&D activities, the Ghoshal and Bartlett (1988) typology provides a good point of departure. The authors identify four distinct processes: local-for-local, centerfor-global, local-for-global and global-for-global. ...
... Researchers in the field of international R&D identified various structures and organizational models for international R&D organizations (De Meyer, 1991;Gassmann & von Zedtwitz, 1999). Table 1 summarizes some of the key contributions and relates them to the modes of global innovation identified by Ghoshal and Bartlett (1988). It can be seen that global-for-global comes closest to what authors like Gerpott (1991), Chiesa (1996), De Meyer (1991), and Gassmann and von Zedtwitz (1999) call spider-web, network, or integrated network. ...
Today, many organizations are adopting streamlined, adaptive hierarchies that increasingly employ teams in daily operations. This paper focuses on the use of teams in international R&D networks. Specifically, it investigates the incidence of R&D teams and analyses the influence of four contingency factors on team utilization. The four contingency factors are cultural distance, geographic distance, the research mandate and the market mandate of the local R&D unit. Based on a survey conducted in 2000, we present empirical evidence on 49 leading German MNCs, accounting for 66% of the nations’ privately funded R&D in 1999. Our results clearly demonstrate that firms increasingly use international teams as a means of coordinating such projects. The type of work conducted by an international R&D unit has a strong bearing on the utilization of teams. The latter is linked to a mandate of an R&D unit as “capability exploiting” rather than “capability augmenting.” Also, R&D units with a “global mandate” are more likely to use international teams as a coordination mechanism. On the other hand, we do not find support for geographical or cultural distance as determining factors for the use of international R&D teams.
... The links between internal and external networks and knowledge diffusion have been explored in the management/organisational analysis literature(Forsgren at al., 2005;Hedlund, 1986;Hedlund and Rolander, 1990;Bartlett andGhoshal ,1988 and1991;Ghoshal and Nohria, 1997). ...
... The links between internal and external networks and knowledge diffusion have been explored in the management/organisational analysis literature(Forsgren at al., 2005;Hedlund, 1986;Hedlund and Rolander, 1990;Bartlett andGhoshal ,1988 and1991;Ghoshal and Nohria, 1997). ...
The paper briefly summarizes the historical evolution of TNCs and their activities. It then introduced the major theories developed to explain the TNC. There is an attempt to place the theories historically, within the context of the socio-economic conditions and of the relevant economic ideas in which they were developed. The following theories are discussed. Hymer, market power and control; Vernon’s international product life cycle; the internalization theory; Dunning’s eclectic framework based on: Ownership, Location, and Internalization (OLI) advantages; The Scandinavian School; the evolutionary approaches of Cantwell and of Kogut and Zander; the New Trade theory applied to the TNC; the role of nation-states in the strategic behaviour of TNCs. There are some critical comments at the end of each presentation. A brief analysis of key elements in the theories, their differences and commonalities follows in. It is pointed out that the pattern of development shows tensions between the following interconnected elements: (1) Contents and methods of interest to Business Schools and to Economics Departments; (2) Static versus dynamic approaches; (3) Emphasis on efficiency versus strategic elements; (4) strategies towards rivals as well as towards other players in the economic system such as labour, governments and suppliers; (5) and single- versus multi-disciplinary approaches.
... Its vertical dimension incorporates the insight that subsidiary initiatives may not only consist of radical change challenging the "existing fabric of the MNC" (Dimitratos et al., 2009a: 411), but also incremental innovations which "stay within the existing parameters of the business" (Birkinshaw, 2000: 76-77). For example, local-for-global innovations by MNC subsidiaries (Ghoshal and Bartlett, 1991) are more likely to awaken the corporate immune system than local-for-local innovations (Ghoshal and Bartlett, 1991) do, yet by and large both kinds of innovations will require less organizational entrepreneurship than the "global-internal" initiatives discussed by Birkinshaw, which require disempowering one MNC unit to the benefit of another. Similarly, in the left column, an initiative to boost one subsidiary role's in the MNC's global value chain (Birkinshaw, 2000: 76-77) represents more of a zero-sum game than setting up merely an operational center of excellence (Surlemont, 1998) as a showcase for the rest of the MNC organization. ...
... Its vertical dimension incorporates the insight that subsidiary initiatives may not only consist of radical change challenging the "existing fabric of the MNC" (Dimitratos et al., 2009a: 411), but also incremental innovations which "stay within the existing parameters of the business" (Birkinshaw, 2000: 76-77). For example, local-for-global innovations by MNC subsidiaries (Ghoshal and Bartlett, 1991) are more likely to awaken the corporate immune system than local-for-local innovations (Ghoshal and Bartlett, 1991) do, yet by and large both kinds of innovations will require less organizational entrepreneurship than the "global-internal" initiatives discussed by Birkinshaw, which require disempowering one MNC unit to the benefit of another. Similarly, in the left column, an initiative to boost one subsidiary role's in the MNC's global value chain (Birkinshaw, 2000: 76-77) represents more of a zero-sum game than setting up merely an operational center of excellence (Surlemont, 1998) as a showcase for the rest of the MNC organization. ...
... In performing the tasks assigned by its HQ, an OS develops its capabilities to obtain economies of scale and economies of scope and to strengthen the experience curve effect. Resources are necessary to improve the core competencies of an MNE (Ghoshal & Bartlett, 1988b;Hedlund, 1986;Prahalad & Doz, 1981;Rugman & Verbeke, 2001). In this regard, higher-tier OSs play significant roles in value creation and value capture (Pavlínek & Ž enka, 2016). ...
This study integrates the offshore subsidiary (OS) development (OSD) and smile curve paradigms to examine the impact of local procurement on OSs' functional upgrading of value chains (VCs) in China. Based on an offshore subsidiary development framework with headquarters-driven, internal subsidiary-driven, and host economy-driven, we draw on Taiwan-based subsidiaries operating in China from 2008 to 2018 to examine the relationships among value-chain functions, including technological enhancements (TE), marketing operations (MO), procurement mandates, and principal OSD determinants. In sum, the empirical results indicate that Taiwan-based OSs are able to strengthen their competitive advantage in China by engaging in persistent value creation through upgrading both TE and MO. In this study, some insights shed light on subsidiary development processes for multinational enterprises to revisit their strategies for deglobalization of VC configurations.
... Risk management in International Transport and Logistics Report (2009) Ghoshal (1987) Macroeconomic, policy, competitive, resource Mason-Jones -Towill (1988); Jüttner (2005) Environmental, demand, supply, process and control risk sources Merna -Smith (1999); Waters (2007) Strategic, natural, political, economic, physical, supply, market, transport, products, operations, financial, information, organization, management, planning, human, technical, criminal, safety, environment, local permits Lee (2002); Kleindofer Saad (2005); Sodhi -Lee (2007) Demand, supply and contextual risks Svensson (2002) Inbound and outbound risk sources Cranfield University (2003) Demand, supply and environmental risks; process and control risks Zsidisin (2003), Zsidisin et al. (2004) Inbound supply risks Cavinato (2004) Risks related to physical, financial, informational, relational and innovational sub-chains Chopra -Sodhi (2004) Disruptions, delays, information systems, forecast, intellectual property, procurement, receivables, inventory, capacity risks Christopher -Peck (2004); Manuj -Mentzer (2008) Supply, demand, operational and security risks Christopher et al. (2004); Peck (2005) Risks exist at different levels product/process, assets, organizations and inter-organizational networks, environment ...
An interesting study of risk identification related to the recent recession which hit UK in the third quarter of 2008.Recession not only accentuated certain risks already existing in freight transport in the past but also led to the emergence of new ones during and post-recession. This research is thus an attempt to identify and assess the risks faced by freight companies during recession and suggest mitigation strategies to deal with such risks in future. The study reveals that risks related to recession will become more intense in future, however preparedness and tested mitigation strategies can help to lessen or nullify their impact on freight companies.
... Others have centred attention on those corporate strategies themselves and the associated corporate structures that shape subsidiaries' behaviour -for example Doz and Prahalad (1984) and Prahalad and Doz (1987). There is also a wellestablished body of literature that focuses more directly on how MNC strategies have infl uenced both the international location of their innovative activities and the nature of those activities in subsidiaries -for example, Ghoshal and Bartlett (1988); Pearce (1999), Kuemmerle (1999), Papanastassiou and Pearce (1999), Zander (1999), Kumar (2001), and von Zedtwitz and Gassman (2002). Others give greater attention to more 'local' infl uences. ...
... Others have centred attention on those corporate strategies themselves and the associated corporate structures that shape subsidiaries' behaviour -for example Doz and Prahalad (1984) and Prahalad and Doz (1987). There is also a wellestablished body of literature that focuses more directly on how MNC strategies have infl uenced both the international location of their innovative activities and the nature of those activities in subsidiaries -for example, Ghoshal and Bartlett (1988); Pearce (1999), Kuemmerle (1999), Papanastassiou and Pearce (1999), Zander (1999), Kumar (2001), and von Zedtwitz and Gassman (2002). Others give greater attention to more 'local' infl uences. ...
... In order to be more competitive, companies have structured their R&D activities globally Bartlett, 1988;Reddy, 2000); several studies show that MNC investments in R&D are increasingly oriented toward subsidiaries located outside the home country (UNCTAD, 2005;Doz et al., 2006). The MNCs recognize that different parts of the company may develop R&D activities with different skills. ...
Resumo O Brasil é uma economia bastante conhecida por seu potencial de atração de investimentos de empresas multinacionais (MNs) em atividades produtivas. A questão é saber se o Brasil também é atrativo quando se trata de investimentos em atividades de pesquisa e desenvolvimento (P&D). A partir de entrevistas com 54 subsidiarias de MNs, esse artigo apresenta uma caracterização das atividades de P&D conduzidas no país, a partir de uma tipologia com cinco níveis de complexidade. Resultados revelam que a maioria das empresas MNs entrevistadas conduz atividades de desenvolvimento de forma contínua no Brasil; entretanto atividades de pesquisa raramente são feitas. Casos em que as subsidiárias são responsáveis por parte do desenvolvimento de algum produto ou sistema na rede de P&D local foram identificados, porém em números bastante limitados. Palavras-chave R&D global; empresas multinacionais; subsidiárias brasileiras * Artigo recebido em ago. 2009 e aceito para publicação em jul. 2010. Abstract When considering Brazil as an attractive economy for investments of multinational companies (MNCs) in manufacturing and in resource-based activities, it is relevant to identify whether it is also considered as a host for R&D. Thus, this paper presents a characterization of the R&D activities carried out by the Brazilian subsidiaries of foreign MNCs, based on case studies with 54 companies. A typology classifying local units by the kind of R&D performed in Brazil was developed. Most of the sampled companies conduct development activities consistently, but research is rarely carried out. We also observed that few of the subsidiaries are responsible for part of the development of product or system in the global R&D network.
... Conceptual and empirical literature in the field of international management has long suggested two distinct missions when it comes to transnational innovations (e.g., Hedlund/ Rolander 1990, Ghoshal/Bartlett 1988, Medcof 2001, Ambos/Schlegelmilch 2004, Chiesa 1996, Kuemmerle 1999, Zedtwitz/Gassmann 2002: One, focusing on the exploitation of the firms' existing capabilities, the other on the creation (augmentation, exploration) of new capabilities. ...
Abstract and Key Results
Using a dataset of 139 R&D laboratories located in 21 countries, this study empirically tests whether a fit among R&D laboratory mission and national culture impacts R&D performance.
Specifically, we assume that some cultures possess a natural advantage when it comes to capability augmenting tasks, while other cultures are better suited to host capability exploiting tasks.
Where the mission of the laboratory is capability exploiting, our results support a positive effect of culture-mission alignment. However, no relationship between mission-culture alignment and performance can be found in case of capability augmenting laboratories.
... A substantial body of theoretical and empirical research has investigated how companies organize their internal innovative centres (Howells, 1997; Pearce and Singh, 1992; Florida, 1997; Grandstrand et al., 1992; Zander, 1999). Bartlett and Ghoshal (1990) have singled out three main strategies which can be implemented by MNEs, whose signiicance varies across countries, industries and companies: Centre-for-global This is the traditional 'octopus' view of the multinational corporation: a single 'brain' located within the company headquarters concentrates the strategic resources (top management, planning and technological expertise ) and distributes impulses to the 'tentacles' (that is, the subsidiaries) scattered across host countries. Even when some R&D is undertaken abroad, this is basically concerned with adapting products to the needs of the local users. ...
The concept of globalization of innovation is the zip between two fundamental phenomena of modern economies: the increased international integration of economic activities and the raising importance of knowledge in economic processes. The paper singles out three different components of the globalization of innovation: (1) the international exploitation of nationally generated innovations; (2) the global generation of innovations by MNEs; and (3) global techno-scientific collaborations. Empirical evidence on these three categories is here presented, suggesting that the relevance of global forces in innovation is rapidly increasing, although at a different pace for each of the three ongoing processes.
... A similar group of studies imply that the firm's relative competency in a particular technical area will determine what types of technology may be transferred, and how the firm will proceed with the transfer (Attewell, 1992;Egelhoff, 1990;Hall and Johnson, 1970). Two works by Ghoshal ( Ghoshal and Bartlett, 1988a;Ghoshal and Bartlett, 1988b) suggest that specific integrating mechanisms must be used to transfer technologies, depending on the firm's location in the multinational network. While these studies offer some insight that contingencies affecting technology transfer exist, they do not directly answer the question of "how should I do it?" ...
This paper examines the link between the complexity of a technology and the complexity of communication behaviors associated with its transfer from one location to another. The setting for the research is an international joint venture between three firms in the chemical industry. The transfers of four different categories of technology were observed in this study. They were general information, specific information, hardware, and procedures or practice. A large variety of different approaches and methods were observed to have been used in the transfers of the 208 specific technologies tracked in this research. The transfer of general information was associated with visits to a partner's site where it was observed first-hand. Specific information also was transferred though site visits, but usually in conjunction with follow-up communication that did not require face-to-face interaction. While no clear specific communication or interaction process was associated with the transfer of physical hardware, the transfer of procedures or practices was associated with a diverse array of transfer methods and a high level of transfer effort. In general, the more complex technologies required more effort to complete their transfers than did simpler technologies. The implications of these findings are discussed.
This study aimed at entrepreneurial orientation and performance of agro business in North Central State, Nigeria. The study specifically investigated the effect of EO dimensions on productivity and profitability of agro-business among others. The study adopted a survey research design with a focus on quantitative research methods. The study used the proportionate stratified sampling method. With the sample size of 375, proportionate stratified sampling was used to select the number of firms. To test the reliability of constructs, Cronbach Alpha Test was employed. The study used descriptive statistics, correlation and covariates for data analyses. Hypotheses were tested using regression technique. Finding showed that innovativeness, risk-taking, proactiveness and competitive aggressiveness have significant positive effect on productivity of agro-business in the North Central State, Nigeria. Finding further showed that innovativeness and proactiveness have significant positive effect on the profitability of agro-business in the North Central State, Nigeria. The study concluded that EO is crucial for driving desirable business performance. This study recommended that agro-business firms should focus more on innovativeness, risk-taking, proactiveness andcompetitive aggressiveness in the pursuit of improved productivity; and that they should target only innovativeness and proactiveness for sustainable increase inprofitability.
This paper discusses the different ways of obtaining technology for the development of products made by companies in developing countries that have production units abroad. As the literature, companies hold FDI for several reasons, but there are few studies on the foreign direct investment of firms from developing countries. We believe that the acquisition of technology and make partnerships with large firms are reasons that encourage the companies to conduct FDI. We will analyze Brazilian companies which have subsidiaries and are important in their markets. These firms have made their internationalization strategies a way to obtain technology. Then strategies challenges faced and the process of product development are discussed in this article. The theoretical approach mixing elements of the theory of internationalization and management of MNC companies and the development of product, looking relates them to the better understanding of the strategies used by firms. Secondary data were collected and empirical data was obtained from case study. Our findings show that the decision of FDI is a strategy that helps firms to stay technologically updated, to maintain the internal market, enabling the gain market abroad, allowing to support the expenditures in R&D and to obtain the necessary technological capacity.
The focus of this article is to examine the extent to which firms in the electronics industry in Malaysia and Brazil (Manaus) have developed significant levels of innovative technological capabilities (TCs). By examining whether innovative capabilities have spread to these two late-industrialising countries, the article seeks to add new evidence to the debate of globalisation of innovative capabilities and to argue against existing generalisations. It draws on empirical evidence from eighty-two electronics firms—TNC subsidiaries and local firms: fifty-three in Malaysia (twenty-five in Penang and twenty-eight in Klang Valley) and twenty-nine in Manaus (Northern Brazil). Contrary to common generalisations, the study has found that the capabilities of most of the sampled firms in Malaysia and Manaus have been upgraded to carry out diverse types of innovative technological activities. Additionally, these capability-building efforts are strongly associated with higher capabilities for local decision making and control, automation level, and efforts to increase exports. Indeed, the study has found pockets of innovative firms that innovate to be competitive by reducing costs, being more productive, reducing lead time and producing better products—regardless of whether they are in a domestic market-oriented country or in an export-oriented country. Finally, the findings and analysis in this study challenge the relevance of some of the existing perspectives on the globalisation of innovative capabilities to the late-industrialising context.
Global R&D management, the management of company R&D effort distributed over different countries, a task that concerns multinational firms, has not been widely studied. The authors have therefore carried out in‐depth studies of global R&D conducted by 7 European and 15 Japanese companies. Their objective was to identify ‘best practice’ and so construct a framework for future research.
The authors' conclusions are as follows. Globalisation, that is decentralisation of R&D, has become a necessity for multinationals as a result of the localisation of competition, of product life becoming shorter than development time, and the need to locate laboratories near sources of new technological know‐how.
Because foreign acquisitions often lead to the acquisition of laboratories, questions are raised about how best to integrate them with the administrative practices of the ‘home’ organization, whether to reorganize them or to close them down. When it is necessary to set up a new foreign‐based laboratory deciding its exact location will require the weighing of factors such as whether the activities are to be market or process oriented, where on the R to D scale the activities will be placed, and how far direction of the laboratory's programmes and work will be decentralised.
Global management also demands special attention to the building of an open communication network among the laboratories, the best form of which has yet to be determined. The main concern in human resource management will be how to select and develop an internationally oriented management corps and how to train R&D professionals to communicate across sites.
If globally dispersed R&D laboratories are to be most effectively used then a new framework for their management needs to be developed.
Successful new product and service development increasingly relies on the ability to adopt an international perspective, throughout the development process itself, and by targeting international or global markets, rather than simply serving domestic customers. Yet, although there exists an impressive body of research concerning the management of new product development, the evidence base with respect to international (or global) new product development practices and management is largely in its infancy, and is, at best, fragmented. This guest editorial provides a synopsis of the main research streams in the broad field of international new product development, highlighting major gaps in current knowledge and understanding. The special issue is a modest attempt at tapping current thoughts and research investigations in this critical area, seeking, also, to stimulate much-needed debate and further research. One article examines whether international diversity is positively associated with new product development performance. Two articles tackle the role that national culture plays in influencing consumer acceptance of new products (technology) on the one hand, and firms’ global new product development approach on the other. A final article investigates technology transfer as a special case of new technology adoption in developing markets.
This empirical study explores the dynamics of standard operating procedures (standards) as an innovation process in service multinational corporations (MNCs). The qualitative data was collected from five multinational hotel chains (in three multinational hotel groups) and their affiliated hotels located in the UK, Thailand, France and Hong Kong. The results show that the evolution of standards can be identified as an innovation process within the multinational hotel groups because new service offerings and processes are driven by changes in corresponding standards. A process of standard evolution contains four consecutive stages: variation, selection, experimental-replication, and routinisation. Throughout the process, collective and multiple learning underline evolving standards over time. The evolution of standards can be recognized as an ‘all for one and one for all’ innovation process in service MNCs since all actors, including the corporate headquarters, regional headquarters and affiliated hotels, participate in this long process.
This paper focuses on the management of R&D units established by foreign companies in China, investigating R&D missions, site build-up, integration with the parent organization, and overall performance measurement. The research is based on 37 qualitative expert interviews with local R&D directors and managers conducted between 2001 and 2004, using a semi-structured research questionnaire, and semi-quantitative research done on 199 foreign R&D labs in China. Cultural influences on R&D management, location advantages, expatriate involvement, and organizational evolution of local laboratories are discussed. We find that foreign R&D laboratories in China are not only important vehicles for local market development but also increasingly important sources of locally developed technology.
Recently, we have witnessed a strong growth in the internationalization of many firms' product development activities. However, the lack of attention devoted by scientific research to the management of international innovation contrasts sharply with the importance attached to it as a cornerstone of international business success. Although several empirical studies and normative theories have specified the communication requirements in innovation teams, an empirically based insight is definitely needed on the communication requirements and requirements that prevail in the complex context of international innovation teams, in which the participants are located in different company units, countries, and cultures.
This article addresses the following research question: viewing international innovation as an interfunctional activity, what are the communication requirements an international innovation team is facing, and what are the communication capabilities (interface mechanisms) that may be adopted to initiate, develop, and launch the new product effectively and efficiently? An extensive case study research project was designed to develop a comprehensive theoretical framework. Over a two year time period, the research team has investigated selected innovation projects in four European multinational corporations.
The analysis of the case study data suggests five requirements that determine the effectiveness and efficiency of communication in international product development teams: network transparency, knowledge codification, knowledge credibility, communication cost, secrecy. To cope with these communication requirements, organizations may create firm level capabilities (parallel structures, cross‐functional and inter‐unit climate, communication infrastructure, goal congruence) and team level capabilities (core team, team leadership, formalization, procedural justice). The evidence from the in‐depth case study research indicates that these mechanisms provide a parsimonious and powerful approach to address the communication requirements in international product innovation teams. After the information processing framework proposed by Tushman and Nadler [124], the adoption of these mechanisms is expected to improve innovation effectiveness.
This holds important consequences for the management of international product innovation projects. First, the innovating firm must balance centralization and decentralization, employ formal as well as informal strategies, and integrate ad‐hoc and permanent strategies. Second, it highlights the critical role of the project leader. Given the fact that companies often select the most available person, rather than the best person for the job, the allocation of light weight project leaders may create heavyweight problems in international teams. Third, following the argument in favor of procedural justice, the absence of involvement may severely hinder cross‐functional commitment to international innovation projects. Fourth, the innovating firm must also actively manage the communication flows with external parties. Failure to do so may result in flawed specifications, and a limited understanding about product design and market strategies.
Subsidiaries of multinational enterprises are located in a range of environments, in which they are exposed to organizational, national, and sub-national characteristics. Instead of being distributed equally, economic resources are agglomerated in specific countries, or even regions, and the subsidiaries located in these different environments have a heterogeneous resource configuration. This implies that dimensions of space related to geography and subsidiary network relationships may affect how the firm is managed. This paper investigates how spatial and contextual distance within multinational enterprises affects headquarters resource allocation to specific innovation transfer projects between subsidiaries. In brief, the results suggest that sub-national factors, such as the structure of the subsidiary network, offer a strong explanation for headquarters resource allocation. Positive and negative effects of national factors were also found, which implies that distance matters for headquarters resource allocation activities. By integrating the organizational and geographic dimensions, this paper contributes to knowledge about the drivers of headquarters resource allocation to subsidiaries, thereby extending theories related to how subsidiaries can evolve within the multinational enterprise with support from headquarters.
A growing number of studies suggest that only innovative subsidiaries generate positive technological effects in host countries. In this context, this paper explores the variability in the intensity of innovative activity across MNC subsidiaries within a late-industrialising host economy in connection with two factors: the subsidiaries' functional integration within (a) their global corporations and (b) their host economy. We found that the more innovative subsidiaries were those that enjoy integration to both the local economy and their global corporation. However, they represented a small proportion of all subsidiaries, most of which were disconnected from both their global corporation and the local economy. We also found that, in common with some findings in advanced country contexts, but in contrast to common expectations in industrialising economies, subsidiaries that were strongly integrated into their parent corporations undertook more, not less, intensive innovative activity than those that were well integrated into the host economy.
Much work has been done on software reuse "in the small" - objects, subroutines, and components. However, relatively little research on very large-grained reuse is available in the literature. This initial study of a large US-based banking institution indicates significant levels of innovative reuse of internally developed software, including reusing both infrastructure and applications across Internet, teller systems, and ATM systems, all with surprisingly little customization and rewriting. This study presents findings of the initial research, including the types and granularities of reused systems. A conceptual model to explain their success is proposed, addressing both organizational and technical factors, and next steps are documented
This paper empirically investigates how internationalization influences the generation of new technology within the multinational corporation. Data on the introduction of 756 technologies by 23 Swedish multinationals over the 1971–1990 period show that foreign units account for an increasing share of all new technologies that are introduced in the multinational network. Additionally, foreign units are associated with a significantly higher probability of entry into new and more distantly related fields of technology, creating a long-term drift into new technological capabilities. The data support the proposition that foreign acquisitions are particularly likely to introduce new and more distantly related technology to the multinational group, although this aspect of technological renewal predominantly applies to firms carrying out explicit international acquisition strategies. The findings are consistent with an evolutionary view of the multinational corporation, involving a gradual movement into new fields of technology through maturing international operations and more significant departures from established technology portfolios through events like foreign acquisitions. It is argued that international growth allows the multinational to leverage its accumulated experience in the exploitation of geographically dispersed and idiosyncratic technological capabilities. At the same time, the observations point to a fundamental, growing and perhaps underestimated tension between technological opportunity and coordination and control in the maturing multinational corporation.
We studied “regional innovation relays” as MNC regional offices that mediate between knowledge generation at the local level and knowledge application at the global level. The significance of the region as a nexus of innovation is illustrated by concrete examples from U.S. and Japanese MNCs. The role of regional management for the MNC’s innovation system hinges precisely on the need for linkages between knowledge embedded in locally conducted activities and innovation exploited at the global level by the MNC. A framework of regionally facilitated innovation illuminates this process.
This article examines the implications of learning processes (intra e inter-firm processes), to accumulate capabilities at Electrolux do Brasil, Curitiba/PR, from 1980 to 2003. The aim was to analyze how the learning processes influenced the accumulation of innovativenes capabilities, in the technological function: Product Activities. This study is based on simple case study methodology, the evidences was obtained through multiply sources: interviews, meetings, documentation and direct observation. The model for capability accumulation allowed technological capability levels to be mensured. The model for intra-firm learning indentifies four learning processes and his features. The inter-firm model distinguish knowledge links. By the combining three analytical models in the same study, this article contibuted to explain how the learning processes enable accumulation of innovativenes capabilities. The evidences that emerged from this study contradict the general sense, related to the absence of innovation and the absent of knowledge links for innovation, in a subsidiary of transnational group, in developing country.
ResearchGate has not been able to resolve any references for this publication.