Session 383

Globalization of R&D: Implications for Learning and Innovation

Track G

Date: Tuesday, September 23, 2014

Track I

Time: 08:00 – 09:15

Common Ground

Room: Glasgow


Facilitator:

  • Felipe Monteiro, INSEAD

Title: Costs and Performance Implications from HQs Intervention in Subsidiaries’ Affairs

Authors

  • Ulf Andersson, Mälardalen University
  • Gabriel R G Benito, BI Norwegian Business School
  • Randi Lunnan, BI Norwegian Business School

Abstract: This paper focuses on HQ intervention and the costs associated with it. Extant literature specifies HQ interventions in areas such as organizing lateral knowledge transfers, strategic planning, support functions, transfer of knowledge to subsidiaries, control mechanisms as means to reduce incentive problems. We link MNC organization with the magnitude of HQ intervention in subunits’ affairs, and examine types of costs such meddling gives rise to. This gives us the possibility of teasing out how increased costs of specific intrusions will affect the net value of HQ action. HQ intervention effects the motivation of subunits and influences the different types of costs. We argue that the scope and type of intervention as well as subsidiary characteristics affect the severity of cost increases, ultimately influencing MNC performance.

Title: Is Offshoring an Expeditor of Negative or Positive Process Innovation Performance: The Role of Distance and Interdependencies

Authors

  • Edward Gillmore, Mälardalen University

Abstract: This paper submits that research on offshoring of R&D has focused mostly on the empirical phenomenon’s under-lying offshoring’s strategic drivers and less on extending our understanding of how the MNC reconfiguration impacts operational performance and process innovation performance. So as to theoretically frame the implications of the organizational reconfigurations and process innovation, brought about by offshoring R&D, this proposal centres on the interplay between interfaces, interdependencies and distance. Offshoring of R&D requires global reconfigurations, which in turn strain coordination due to boundary changes, and distance (in this proposal geographic and institutional distance). This increases the complexity placed on the global division and coordination of R&D activities and subsequently process innovations and calls for further investigation of organizational reconfigurations.

Title: Key Factors for Innovation Deployments within MNEs

Authors

  • Sihem Ben Mahmoud-Jouini, HEC-Paris
  • Florence Charue-Duboc, Management Research Center

Abstract: Deploying innovations among subsidiaries is difficult when innovations are based on tacit and complex knowledge. It is even more challenging when subsidiaries are autonomous and when innovations require the leveraging of local knowledge, such as the client’s one. Our objective is to study the factors that favor such deployments. Based on a multi-cases analysis, we suggest inductively five factors that foster the internal and external embeddeddness of the subsidiaries favoring innovation deployments: the identification of a local hero leading the deployment and consolidating the associated knowledge, the formation of an experts’ network for each innovation coordinated by the local hero, the identification of a market champion to coordinate cross-subsidiary sales forces, the development of local partnerships with complementors whilst maintaining an inter-subsidiary coordination, and implementing the innovation for the first time in a subsidiary capable of initiating the deployment dynamic

Title: Product Modularity and Firm Performance in Global R&D Organizations: The Mediating Role of Coordination

Authors

  • Marco Zeschky, University of St. Gallen

Abstract: The “fine-slicing” of the value chain is also evident in the context of international research and development (R&D) organizations, where distinct value chain activities such as the development of components, modules, and systems are offshored and performed in different countries. However, the increased dispersion of R&D activities necessitates the integration of these activities, thereby increasing the worldwide coordination efforts. In this article, we investigate how different types of product architectures, measured by their degree of product modularity, affect firm performance in internationally dispersed R&D organizations. We use hierarchical multiple regression to test the hypotheses. The findings indicate that the relationship between product modularity and firm performance is mediated by the formal and informal coordination mechanisms that these firms use to integrate their dispersed R&D activities.

Title: R&D Offshoring and Knowledge Exploiting versus Augmenting Motives: The Role of Talent Shortage at Home

Authors

  • Niccolo Pisani, University of Amsterdam
  • Joan E Ricart, IESE Business School

Abstract: Companies have increasingly invested in international R&D. Extant research documents that such investments are generally triggered by the desire to exploit firm-specific advantages possessed at home or to augment existing knowledge by sourcing new competencies abroad. In this paper, we contend that both motivations play a role in shaping R&D offshoring. We also posit that the knowledge-exploiting argument has represented the initial rationale and still remains the strongest driver. Moreover, we postulate that managers’ perception of a shortage of talent at home mediates the association between these motives and the decision to offshore innovation activities, being the mediation stronger in the knowledge-augmenting case. We validate our hypotheses using a database of 1,859 offshoring implementations executed by 555 multinationals headquartered in the U.S. and Western Europe.

Title: Strategic Responsiveness to Institutional Change

Authors

  • Luis Dau, Northeastern University

Abstract: This paper combines notions from the POST Model of Economic Geography and Learning Theory from International Business to study how firms may enhance their responsiveness to institutional processes and changes through different forms of international learning. Focusing on one form of institutional changes, namely pro-market reforms, we analyze how firms may boost the potential benefits from such changes through international strategies that increase their access to knowledge spillovers and absorptive capacity. These strategies include internationalizing through joint ventures, acquisitions, subsidiary network control, industry diversification, enhancing innovation capabilities, subsidiary network centralization, institutional exposure, and extant experiential knowledge.

All Sessions in Track G...

Sun: 08:00 – 09:15
Session 389: Managing the Multinational Organization in an Increasingly Complex World
Sun: 09:30 – 10:45
Session 221: Global Stakeholder Networks
Session 390: Local Determinants of Competitive Advantage and Disadvantage
Sun: 11:15 – 12:30
Session 2: Offshore Outsourcing, Dynamic Capabilities, and the Changing Nature of Firm Boundaries
Sun: 15:45 – 17:00
Session 270: Innovation in MNCs and Global Networks
Session 371: Inter and Intra Organizational Learning Across Borders: A Knowledge Management Perspective
Session 380: Small, Young and Entrepreneurial Firms: A Unique Perspective in Globalization
Sun: 17:15 – 18:30
Session 603: Global Strategy IG Business Meeting
Mon: 08:00 – 09:15
Session 335: Internationalization and Strategic Decisions
Session 379: Emerging Markets: Understanding the Importance of Context
Mon: 11:00 – 12:15
Session 372: The Challenges of Global Operations: Managing R&D and Complexity
Session 373: Global Diversification: Governance and Performance Implications
Mon: 14:45 – 16:00
Session 375: Changing External Environments: How do Multinationals Respond?
Session 381: Firm boundaries in Multinational Organizations: Antecedents and Consequences
Session 414: Global Networks and Business Groups
Mon: 16:30 – 17:45
Session 226: Culture, Norms and Institutions: The contextual influences on Entrepreneurship
Session 374: Antecedents and Consequences of Multinational Location Decisions
Session 382: Drivers of Multinational Performance:What, Where and When?
Tue: 08:00 – 09:15
Session 383: Globalization of R&D: Implications for Learning and Innovation
Tue: 11:00 – 12:15
Session 376: Headquarters Subsidiary Relationship: New Approaches to an Old Question
Session 384: Multinational Location Decisions: New Approaches Across Different Perspective
Tue: 15:30 – 16:45
Session 263: Innovation Models in Emerging Economies
Session 377: Organizing Assets Across Borders: Drivers and Consequences
Session 385: Multinational firms and the External Environment: The Role of Institutions
Tue: 17:15 – 18:30
Session 378: Global Outsourcing & Offshoring: Implications for Multinational Decisions

All Sessions in Track I...

Sun: 08:00 – 09:15
Session 278: Routines: Theoretical and Empirical Advancements and Avenues for Future Research
Sun: 09:30 – 10:45
Session 463: Big Data: Revolutionizing Innovation and Competition
Sun: 11:15 – 12:30
Session 464: Foundations Session: A conversation with Michael Tushman on Leadership, Innovation and Strategic Change
Sun: 15:45 – 17:00
Session 270: Innovation in MNCs and Global Networks
Session 275: Open Innovation: Outcomes and antecedents
Sun: 17:15 – 18:30
Session 605: Knowledge and Innovation IG Business Meeting
Mon: 08:00 – 09:15
Session 260: IPRs, Appropriability and Innovation
Session 274: Incumbents, Radical Innovations and Disruptive Technologies
Mon: 11:00 – 12:15
Session 276: Organizational Learning
Session 277: Learning From Others
Session 372: The Challenges of Global Operations: Managing R&D and Complexity
Session 423: Alliances and Innovation Performance
Mon: 14:45 – 16:00
Session 265: Learning, Search, Slack: The behavioral theory revisited
Session 269: Knowledge Flows: Transfer, sharing and replication
Mon: 16:30 – 17:45
Session 254: Conversations about Knowledge
Session 257: Spin offs, Venture Capital and Entrepreneurship
Tue: 08:00 – 09:15
Session 259: Institutionalizing Innovation: Norms, status and legitimacy issues
Session 273: From Internal Resources to Customer Needs
Session 383: Globalization of R&D: Implications for Learning and Innovation
Tue: 11:00 – 12:15
Session 267: The Role of Individuals in Innovation
Session 272: Research and Development: Antecedents and outcomes
Session 361: Creativity and Innovation
Session 469: M&As and Innovation
Tue: 15:30 – 16:45
Session 262: Networks of Innovators
Session 263: Innovation Models in Emerging Economies
Tue: 17:15 – 18:30
Session 255: Exploration and Exploitation
Session 256: Organizing for Open Innovation
Session 261: Practices and Processes for Innovation


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