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The evolution of technology in multinational enterprises: the role of creative subsidiaries

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  • Pearce, Robert
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    Abstract

    The paper deals with the positioning of dispersed technology acquisition and application in heterarchical MNEs. It suggests that as MNEs acknowledge the need to respond to technological and market heterogeneity, this is best done through creative subsidiaries that access and apply localised dimensions of knowledge. Ultimately the most successful results of this, for the creative subsidiary and its MNE corporate group, are likely to be achieved if exercised as new perspectives within the current technological trajectory of the MNE. New technological dimensions emerging in creative subsidiaries can usefully be allowed to challenge the limits of the group's technology trajectory, but not to usurp it in a disorderly fashion. The aims of central technology management in this type of MNE are, therefore, to retain effective custodianship of a coherent and cohesive technology trajectory, without stifling the ability of creative subsidiaries to generate and apply new knowledge.

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    Bibliographic Info

    Article provided by Elsevier in its journal International Business Review.

    Volume (Year): 8 (1999)
    Issue (Month): 2 (April)
    Pages: 125-148

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    Handle: RePEc:eee:iburev:v:8:y:1999:i:2:p:125-148

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    Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/description#description

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    Related research

    Keywords: Multinationals Technology R&D Mandate subsidiaries Heterarchies;

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    Cited by:
    1. Robert Pearce, 2001. "Multinationals and Industrialisation: The Bases of 'Inward Investment' Policy," International Journal of the Economics of Business, Taylor and Francis Journals, vol. 8(1), pages 51-73.
    2. Narula, Rajneesh & Dunning, John H., 2009. "Multinational enterprises, development and globalisation: Some clarifications and a research agenda," UNU-MERIT Working Paper Series 023, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.
    3. Dörrenbächer, Christoph & Gammelgaard, Jens, 2006. "Subsidiary redefinition: Charter loss in a German-owned subsidiary in Hungary," Discussion Papers, Research Unit: Internationalization and Organization SP III 2006-201, Social Science Research Center Berlin (WZB).
    4. Filippov, Sergey & Costa, Ionara, 2007. "Redefining Foreign Direct Investment Policy: A Two Dimensional Framework," UNU-MERIT Working Paper Series 029, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.
    5. Kravtsova, Victoria, 2010. "Identifying patterns of outward foreign direct investments: Some empirical evidence," Journal of Multinational Financial Management, Elsevier, vol. 20(1), pages 1-13, February.
    6. Suma Athreye & John Cantwell, 2005. "Creating Competition? Globalisation and the emergence of new technology producers," Open Discussion Papers in Economics 52, The Open University, Faculty of Social Sciences, Department of Economics.

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