Abstract: MNCs have a unique position to access diverse sets of knowledge across their intra- and inter-organizational networks in order to generate innovations and combinations of existing knowledge. This paper aims to analyse whether the diversity of inter- and intra-organizational networks contribute to the enhancement of subsidiaries’ innovation performance. The analysis is based on panel data of 1100 subsidiaries of MNCs operating in Spain for 2008-2011. The empirical findings allow confirming the importance of network diversity. Our results show that intra-organizational network diversity has a significant impact on innovation performance. Therefore, our results lead us to conclude that innovation is largely induced by opportunities for collaboration with partners of inter- organizational network from different backgrounds and knowledge bases, as well as with different geographical locations.

Abstract: We follow a network-based approach to examine the conditions under which peripherality is conducive to the generation of subsidiary innovations. Using data on three MNE intrafirm networks, we find that peripherality promotes innovation if two other aspects of a subsidiary’s ego network, alters network position and network cohesion, are included as moderators of the relationship between peripherality and innovation. Our results highlight that peripheral subsidiary innovation is greater if alters peripherality is high, and if the peripheral subsidiary is embedded in a cohesive network. Further, our results show that peripheral subsidiary innovation is highest if both alters peripherality and network cohesion are high.

Abstract: Multinationals have relied on product modularity as means for easing responsibility allocation and work coordination among the members of their global network of facilities. Despite the widespread adoption of both, product modularity and distributed work arrangements, little is known about the way they relate to each other and how they interact to affect firm performance. Drawing on the modularity literature and specifically on what researchers refer to as the mirroring-hypothesis; we argue that the degree of modularity of the solution used for the company in a project is related to the extent it distributes work among different facilities. We also contend that such relationship is contingent on the level of experience of the project’s manager and that the three factors combine to affect firm performance.

Abstract: Firms are increasingly pursuing multiple approaches in search of superior innovations. These include bolstering internal technological and geographical resources; and gaining external resources through the pursuit of partner alliances. However, less is known about how a firm’s vertical scope plays a role in leveraging internal and external resources for superior innovation performance. We examine the critical issue of how vertically integrated firms differ from their vertically specialized counterparts in leveraging internal and external resources using a novel dataset of 282 semiconductor firms over the years 1991-2002 collated from multiple sources. Overall, our analyses unearths trade-offs for vertically integrated vs vertically specialized firms in leveraging both the internal and external resources for superior innovation.