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How do firms evolve? The patterns of technological evolution of semiconductor subsidiaries

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  • Phene, Anupama
  • Almeida, Paul

Abstract

This study draws on concepts from international strategy and evolutionary economics to investigate the development of innovative ability within multinational subsidiaries. The paper develops hypotheses regarding the evolution of subsidiary innovative abilities, and the changes across time of their knowledge sourcing and sharing patterns with other parts of the multinational enterprise and host country firms. The paper analyzes patent data pertaining to foreign subsidiaries of US semiconductor firms and finds support for subsidiary technological development--there are positive changes in the scale and scope of innovative activity across time. The results also suggest that subsidiaries are increasingly embedded in host country knowledge networks--as they mature, subsidiaries increasingly learn and share knowledge locally. Evidence of increasing integration with other firms within the multinational enterprise is weaker.

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  • Phene, Anupama & Almeida, Paul, 2003. "How do firms evolve? The patterns of technological evolution of semiconductor subsidiaries," International Business Review, Elsevier, vol. 12(3), pages 349-367, June.
    • Handle: RePEc:eee:iburev:v:12:y:2003:i:3:p:349-367
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    2. Drogendijk, H.J., 2005. "The Development of Network Relations of MNC Subsidiaries : How Internal MNC and External (Local) Relations Evolve," Discussion Paper 2005-128, Tilburg University, Center for Economic Research.
    3. Yamin, Mo. & Otto, Juliet, 2004. "Patterns of knowledge flows and MNE innovative performance," Journal of International Management, Elsevier, vol. 10(2), pages 239-258.
    4. Zhang, Feng & Jiang, Guohua & Cantwell, John A., 2015. "Subsidiary exploration and the innovative performance of large multinational corporations," International Business Review, Elsevier, vol. 24(2), pages 224-234.
    5. Collinson, Simon C. & Wang, Rowena, 2012. "The evolution of innovation capability in multinational enterprise subsidiaries: Dual network embeddedness and the divergence of subsidiary specialisation in Taiwan," Research Policy, Elsevier, vol. 41(9), pages 1501-1518.
    6. Morescalchi, Andrea & Pammolli, Fabio & Penner, Orion & Petersen, Alexander M. & Riccaboni, Massimo, 2015. "The evolution of networks of innovators within and across borders: Evidence from patent data," Research Policy, Elsevier, vol. 44(3), pages 651-668.
    7. Xufei Ma & Andrew Delios & Shu Yu, 2020. "Innovation in MNC’S strategy and structure: the (re) emergence of host country headquarters in large emerging markets," Asia Pacific Journal of Management, Springer, vol. 37(3), pages 609-632, September.
    8. Georgios Batsakis, 2016. "Host Location Knowledge Sourcing And Subsidiary Innovative Performance — Examining The Moderating Role Of Alternative Sources Of Knowledge And Ipr Distance," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(06), pages 1-28, August.
    9. Michailova, Snejina & Mustaffa, Zaidah, 2012. "Subsidiary knowledge flows in multinational corporations: Research accomplishments, gaps, and opportunities," Journal of World Business, Elsevier, vol. 47(3), pages 383-396.
    10. Xiaojing Lu & Sebastian Jacques Manuel Boo & Xiaming Liu, 2024. "Is the relationship between institutional distance and subsidiary performance moderated by top management team? Evidence from Chinese multinational enterprises," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-15, December.
    11. Jin, Byungchae, 2019. "Country-level technological disparities, market feedback, and scientists’ choice of technologies," Research Policy, Elsevier, vol. 48(1), pages 385-400.
    12. Drogendijk, Rian & Andersson, Ulf, 2013. "Relationship development in Greenfield expansions," International Business Review, Elsevier, vol. 22(2), pages 381-391.
    13. Manolopoulos, Dimitris & Papanastassiou, Marina & Pearce, Robert, 2005. "Technology sourcing in multinational enterprises and the roles of subsidiaries: An empirical investigation," International Business Review, Elsevier, vol. 14(3), pages 249-267, June.
    14. Yamin, Mohammad & Forsgren, Mats, 2006. "Hymer's analysis of the multinational organization: Power retention and the demise of the federative MNE," International Business Review, Elsevier, vol. 15(2), pages 166-179, April.
    15. Lee, Won Sang & Han, Eun Jin & Sohn, So Young, 2015. "Predicting the pattern of technology convergence using big-data technology on large-scale triadic patents," Technological Forecasting and Social Change, Elsevier, vol. 100(C), pages 317-329.
    16. Yamin, Mo & Sinkovics, Rudolf R., 2009. "Infrastructure or foreign direct investment?: An examination of the implications of MNE strategy for economic development," Journal of World Business, Elsevier, vol. 44(2), pages 144-157, April.
    17. Drogendijk, H.J., 2005. "The Development of Network Relations of MNC Subsidiaries : How Internal MNC and External (Local) Relations Evolve," Other publications TiSEM 4bf995a4-6f3b-41b8-bb40-1, Tilburg University, School of Economics and Management.
    18. Zhang, Feng & Jiang, Guohua & Cantwell, John A., 2019. "Geographically Dispersed Technological Capability Building and MNC Innovative Performance: The Role of Intra-firm Flows of Newly Absorbed Knowledge," Journal of International Management, Elsevier, vol. 25(3), pages 1-1.

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