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MNE competence-creating subsidiary mandates

Published on Dec 1, 2005in Strategic Management Journal5.57
· DOI :10.1002/smj.497
John Cantwell38
Estimated H-index: 38
(RU: Rutgers University),
Ram Mudambi42
Estimated H-index: 42
(TU: Temple University)
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Abstract
The determinants of R&D intensity differ between subsidiaries in a multinational enterprise (MNE). Previous literature suggests that whether a subsidiary achieves a competence‐creating output mandate depends on the qualities of its location. R&D strategies in competence‐creating subsidiaries are supply‐driven while those in purely competence‐exploiting subsidiaries are demand‐driven. Using data on U.K. subsidiaries of non‐U.K. MNEs, we find that the level of subsidiary R&D depends on MNE group‐level and subsidiary‐level characteristics as well as locational factors. The R&D of mandated subsidiaries rises with acquisition, but for non‐mandated subsidiaries R&D falls upon acquisition. MNEs that grow through acquisition have more inter‐subsidiary R&D diversity. Copyright © 2005 John Wiley & Sons, Ltd.
  • References (56)
  • Citations (759)
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References56
Newest
Published on Sep 1, 2004in Journal of International Business Studies7.72
Ram Mudambi42
Estimated H-index: 42
(University of Reading),
Pietro Navarra10
Estimated H-index: 10
(UNIME: University of Messina)
In recent years, as multinational corporation (MNC) subsidiaries have become more closely linked to international networks, their knowledge intensity has risen, and some of their R&D has gained a more creative role. Simultaneously, and often connectedly, many subsidiaries have acquired considerable strategic independence in all aspects of their operations, and therefore are able to exercise considerable intra-firm bargaining power to influence the distribution of the firm's resources. In this co...
Published on Dec 1, 2002in Strategic Management Journal5.57
Erwin Danneels13
Estimated H-index: 13
(WPI: Worcester Polytechnic Institute)
This study examines how product innovation contributes to the renewal of the firm through its dynamic and reciprocal relation with the firm's competences. Field research in five high-tech firms of varying age, size, and level of diversification is combined with analysis of existing theory to develop the findings of the study. Based on the notion that new products are created by linking competences relating to technologies and customers, a typology is derived that classifies new product projects ...
Published on Nov 1, 2002in Strategic Management Journal5.57
Ulf Andersson32
Estimated H-index: 32
(Uppsala University),
Mats Forsgren26
Estimated H-index: 26
(Uppsala University),
Ulf Holm21
Estimated H-index: 21
(Uppsala University)
A special feature of multinational firms (MNCs) is the notion that their sub-units (subsidiaries) are embedded in different local networks (Ghoshal and Bartlett, 1990; Ghoshal and Nohria, 1997; Fors-gren, Johanson, and Sharma, 2000). Each subsidiary maintains unique and idiosyncratic patterns of network linkages and consequently is differentially exposed to new knowledge, ideas and opportunities (McEvily and Zaheer, 1999). In fact, this differential exposure has been put forward as one of the ba...
Published on Nov 1, 2002in Strategic Management Journal5.57
Tony S. Frost5
Estimated H-index: 5
(UWO: University of Western Ontario),
Julian Birkinshaw52
Estimated H-index: 52
(LBS: London Business School),
Prescott C. Ensign11
Estimated H-index: 11
(SJSU: San Jose State University)
This paper seeks to understand the conditions under which ‘centers of excellence’ emerge in foreign subsidiaries of multinational firms. We define a center of excellence as an organizational unit that embodies a set of capabilities that has been explicitly recognized by the firm as an important source of value creation, with the intention that these capabilities be leveraged by and/or disseminated to other parts of the firm. Drawing on overlapping research in international business and strategic...
Published on Feb 26, 2002
J. Cantwell1
Estimated H-index: 1
,
E. Kosmopoulou1
Estimated H-index: 1
Demodulation of FM signals employing an FM feedback loop of the present invention includes a first mixer circuit for mixing an IF input signal with a voltage controlled oscillator signal to down-convert the IF input signal to a predescribed center frequency IF signal. This signal is coupled through a tuned amplifier having an automatic gain control loop and is then filtered in a predetection filter and amplified. The predetection filter is composed of a two-pole crystal bandpass filter having a ...
Published on Dec 15, 1997
Martin Ricketts12
Estimated H-index: 12
,
Ram Mudambi42
Estimated H-index: 42
Published on Jan 1, 2002in Journal of International Management2.83
John Cantwell38
Estimated H-index: 38
(University of Reading),
Lucia Piscitello14
Estimated H-index: 14
(University of Reading)
This paper examines the relative attractiveness of the Italian, German and UK regions for the siting of foreign-owned corporate technological development, controlling for the geographical distribution of the equivalent innovative efforts of established indigenous firms in each country. The data used are patents granted in the US to the world's largest firms from 1969 to 1995, identifying the ultimate nationality of ownership and the location of the research facility responsible for each patent. ...
Published on Jun 1, 2000in Regional Studies3.07
John Cantwell38
Estimated H-index: 38
(University of Reading),
Simona Iammarino26
Estimated H-index: 26
(National Institute of Statistics)
CANTWELL J. and IAMMARINO S. (2000) Multinational corporations and the location of technological innovation in the UK regions, Reg. Studies 34, 317‐332. In a rapidly globalizing economy, and particularly in the face of a process of economic integration such as that occurring in the European Union, regions forge an increasing number of linkages with other locations within and across national boundaries through the local technological development efforts of multinational corporations (MNCs). By us...
Published on Mar 1, 2000in Industrial and Corporate Change1.82
John Cantwell38
Estimated H-index: 38
(RU: Rutgers University),
Lucia Piscitello17
Estimated H-index: 17
(Polytechnic University of Milan)
Recent studies have suggested that firm-specific technological competence may be diversified and internationalized. We show that increases in competence increased corporate technological diversification until the early 1970s, and then again more recently. However, a new interrelationship has now emerged between the accumulation, diversification and internationalization of technological competence, due to the formation of internationally integrated networks within firms. The empirical analysis co...
Published on Jan 1, 2000
Prescott C. Ensign11
Estimated H-index: 11
,
Julian Birkinshaw52
Estimated H-index: 52
,
Tony S. Frost5
Estimated H-index: 5
Cited By759
Newest
Published on Jul 15, 2019
Jing Zeng3
Estimated H-index: 3
,
Zaheer Khan11
Estimated H-index: 11
,
Muthu De Silva3
Estimated H-index: 3
The rise of the digital economy provides firms across the globe with unique business opportunities. Companies such as Facebook, Alibaba, and Uber are competing in a new multi-sided platform world; the primary focus of these firms, from their inception, is to provide digital infrastructure, information and technology—intangible assets that enable direct interaction or value creation across platforms by linking different user group and complementors, often at the international level. Building on d...
Published on Nov 1, 2019in Journal of World Business5.79
Hyoungjin Lee (KU: Korea University), Chris Changwha Chung10
Estimated H-index: 10
(KU: Korea University),
Paul W. Beamish59
Estimated H-index: 59
(UWO: University of Western Ontario)
Abstract This study examines how the composition of subsidiaries’ mandates affects their survival, by investigating the configurational characteristics of mandate portfolios. Examining data from 1991 to 2017 on 14,952 foreign subsidiaries of 4,877 multinational enterprises reveals that while having a mandate portfolio with greater scope in relation to same-parent subsidiaries enhances the survivability of foreign subsidiaries, the effect is weakened when the portfolio has a higher degree of over...
Published on May 14, 2019in Journal of International Business Studies7.72
Ajai S. Gaur29
Estimated H-index: 29
,
Chinmay Pattnaik10
Estimated H-index: 10
+ 1 AuthorsJeoung Yul Lee8
Estimated H-index: 8
We extend internalization theory by examining the contingencies associated with market internalization and its impact on foreign subsidiary survival. Based on a sample of 6170 subsidiary–year observations in 63 countries belonging to 292 MNCs from Korea during 1995–2013, we find that greater product and labor market internalization have weaker impacts on the survival of subsidiaries operating in countries with more developed institutional environments but stronger for subsidiaries of MNCs affili...
Published on Aug 26, 2019in Journal of International Business Studies7.72
Rajneesh Narula37
Estimated H-index: 37
(University of Reading),
Christian Geisler Asmussen15
Estimated H-index: 15
('KCL': King's College London)
+ 1 AuthorsSumit K. Kundu23
Estimated H-index: 23
(FIU: Florida International University)
Internalization theory has provided a resilient analytical framework that explicitly or implicitly underlines much of International Business scholarship. Internalization theory is not a monolithic body of knowledge; instead, it has devolved into several ‘streams’, each of which focuses on the interests of particular epistemic communities, while also acting as a more generic organizing framework for those more broadly interested in its application to real-world challenges. Following a review of t...
Published on Aug 19, 2019in Journal of International Business Studies7.72
Marina Papanastassiou16
Estimated H-index: 16
(Middlesex University),
Robert Pearce23
Estimated H-index: 23
(University of Reading),
Antonello Zanfei20
Estimated H-index: 20
(University of Urbino)
Internationalization of R&D and innovation by multinational enterprises (MNEs) has undergone a gradual and comprehensive change in perspective over the past 50 years. From sporadic works in the late 1950s and in the 1960s, it became a systematically analyzed topic in the 1970s, starting with pioneering reports and “foundation texts”. Our review unfolds the theoretical and empirical evolution of the literature from dyadic interpretations of centralization versus decentralization of R&D by MNEs to...
Published on May 16, 2019in European Journal of Innovation Management
Elisangela Lazarou Tarraço , Roberto Carlos Bernardes2
Estimated H-index: 2
+ 1 AuthorsDennys Eduardo Rossetto1
Estimated H-index: 1
(UTEP: University of Texas at El Paso)
Purpose Is the development of local innovation capabilities enough for foreign subsidiaries in emerging markets to be able to integrate into global R&D projects? The authors argue that it is not. The purpose of this paper is to show the central role of R&D capacities when it comes to inserting foreign subsidiaries in emerging markets into global R&D projects. Design/methodology/approach The study investigated 131 foreign multinational subsidiaries operating in Brazil. For each subsidiary, the au...
Published on Jun 22, 2019in Journal of Management Studies5.84
Joseph A. Clougherty14
Estimated H-index: 14
(UIUC: University of Illinois at Urbana–Champaign),
Tomaso Duso (Technical University of Berlin)+ 1 AuthorsLorenzo Ciari7
Estimated H-index: 7
(European Bank for Reconstruction and Development)
Published on Nov 1, 2018in European Management Journal2.98
Chunhui Tang (Zhejiang University of Finance and Economics), Yaojia Tang (Zhejiang University of Finance and Economics), Shengwei Su (Zhejiang University of Finance and Economics)
Abstract One motivation behind R&D internationalization for emerging market multinationals (EM MNEs) is to expand international markets. This paper analyzes whether the R&D internationalization of EM MNEs contributes to an improvement in international performance measured by foreign sales as a percentage of total sales (FSTS). Using panel data on China's listed companies, this paper introduces more scientific and normative indicators for measuring R&D internationalization in terms of geographic ...
Published on Dec 1, 2018in International Business Review3.64
Victor Ragazzi Isaac (Escola Superior de Propaganda e Marketing), Felipe Mendes Borini8
Estimated H-index: 8
(USP: University of São Paulo)
+ 1 AuthorsGabriel R.G. Benito24
Estimated H-index: 24
(BI Norwegian Business School)
Abstract This study examines factors that influence the development and transformation of local innovations into global innovations from an emerging market subsidiary. We argue that subsidiaries’ relational embeddedness with the external local network is essential for the development of local innovations. Turning local innovations into global ones is the result of the level of innovativeness evoked by the subsidiary located in an emerging market. However, the transformation of local into global ...
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