Product development in MNC subsidiaries: Local linkages and global interdependencies
AbstractThe aim of this paper is to identify and explain how different forms of local linkages vary across different patterns of global workflow interdependence in MNC subsidiaries' product development activities. Both global workflow interdependence and local linkages are essential for innovating and long-term success of a subsidiary. This paper's theoretical approach differs from previous MNC research in that we combine the tightly coupled (or rational) network model with the more common loosely coupled (or differentiated, federative) network model. Empirical data was obtained from subsidiaries in Brazil using web-survey design. Our findings show a positive relationship between local outsourcing linkages and global workflow interdependence in product development provided local cooperative linkages are low. Furthermore, results suggest empirical support for the tightly coupled model and its extension, the adaptively rational model proposed by Astley and Zajec [Astley, W.G., Zajac, E.J., 1991. Intraorganizational power and organizational design: reconcilling rational and coalitional models of organization. Organization Science 2 (4), 104-113.]. Accordingly, our study implies that the more subsidiaries create dependent and counter-dependent relationships, the better they will be positioned within their MNC innovation network and the more pronounced their innovative activities shall be.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of International Management.
Volume (Year): 13 (2007)
Issue (Month): 4 (December)
Contact details of provider:
Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/601266/description#description
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gupta, Anil K. & Govindarajan, V., 1994. "Organizing for knowledge flows within MNCs," International Business Review, Elsevier, vol. 3(4), pages 443-457, December.
- Veugelers, Reinhilde & Cassiman, Bruno, 1999. "Make and buy in innovation strategies: evidence from Belgian manufacturing firms," Research Policy, Elsevier, vol. 28(1), pages 63-80, January.
- Andersson, Ulf & Forsgren, Mats, 1996. "Subsidiary embeddedness and control in the multinational corporation," International Business Review, Elsevier, vol. 5(5), pages 487-508, October.
- Holm, Ulf & Sharma, D. Deo, 2006. "Subsidiary marketing knowledge and strategic development of the multinational corporation," Journal of International Management, Elsevier, vol. 12(1), pages 47-66, March.
- Schmid, Stefan & Schurig, Andreas, 2003. "The development of critical capabilities in foreign subsidiaries: disentangling the role of the subsidiary's business network," International Business Review, Elsevier, vol. 12(6), pages 755-782, December.
- Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
- Maurizio Sobrero & Edward B. Roberts, 2001. "The Trade-off Between Efficiency and Learning in Interorganizational Relationships for Product Development," Management Science, INFORMS, vol. 47(4), pages 493-511, April.
- Peerally, Jahan A. & Figueiredo, Paulo N., 2013. "Techological capability building in MNE-related social businesses of less developed countries: The experience of Grameen-Danone Foods in Bangladesh," MERIT Working Papers 036, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
- Gammelgaard, Jens & McDonald, Frank & Stephan, Andreas & Tüselmann, Heinz & Dörrenbächer, Christoph, 2012. "The impact of increases in subsidiary autonomy and network relationships on performance," International Business Review, Elsevier, vol. 21(6), pages 1158-1172.
- Baier , Elisabeth & Rammer , Christian & Schubert , Torben, 2013. "The Impact of Innovation Off-shoring on Organizational Adaptability," CIRCLE Electronic Working Papers 2013/44, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
- Baier, Elisabeth & Rammer, Christian & Schuber, Torben, 2013. "The impact on innovation off-shoring on organizational adaptability," ZEW Discussion Papers 13-109, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Edwards, Tony & Tempel, Anne, 2010. "Explaining variation in reverse diffusion of HR practices: Evidence from the German and British subsidiaries of American multinationals," Journal of World Business, Elsevier, vol. 45(1), pages 19-28, January.
- Jonas Rundquist, 2008. "World-Class Or Good Enough — The Choice Of Partner When Outsourcing New Product Development In Medium-Sized Firms," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 5(04), pages 423-445.
- Giroud, Axèle & Scott-Kennel, Joanna, 2009. "MNE linkages in international business: A framework for analysis," International Business Review, Elsevier, vol. 18(6), pages 555-566, December.
- Elisa Giuliani & Chiara Macchi, 2013. "Multinational Corporations’ Economic And Human Rights Impacts On Developing Countries: A Review And Research Agenda," Discussion Papers 2013/158, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
- 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.
- Nader Ale Ebrahim & Shamsuddin Ahmed & Zahari Taha, 2009.
"Virtual Teams: a Literature Review,"
- Peerally, Jahan A. & Figueiredo, Paulo N., 2013. "Techological capability building in MNE-related social businesses of less developed countries: The experience of Grameen-Danone Foods in Bangladesh," UNU-MERIT Working Paper Series 036, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.
- Ale Ebrahim, Nader & Ahmed, Shamsuddin & Taha, Zahari, 2009.
"Innovation and R&D Activities in Virtual Team,"
27033, University Library of Munich, Germany, revised 17 Jul 0209.
- Nell, Phillip C. & Ambos, Bjérn & Schlegelmilch, Bodo B., 2011. "The MNC as an externally embedded organization: An investigation of embeddedness overlap in local subsidiary networks," Journal of World Business, Elsevier, vol. 46(4), pages 497-505, October.
- Holl, Adelheid & Rama, Ruth, 2012. "Foreign subsidiaries and technology sourcing in Spain," MPRA Paper 42328, University Library of Munich, Germany, revised Oct 2012.
- Dörrenbächer, Christoph & Gammelgaard, Jens, 2010. "Multinational corporations, inter-organizational networks and subsidiary charter removals," Journal of World Business, Elsevier, vol. 45(3), pages 206-216, July.
- Ale Ebrahim, Nader & Ahmed, Shamsuddin & Taha, Zahari, 2008. "Virtuality, Innovation and R&D Activities," MPRA Paper 27267, University Library of Munich, Germany, revised 12 Apr 2009.
- Igor Gurkov & Sergey Filippov, 2013. "Innovation processes in the Russian manufacturing subsidiaries of MNCs – an integrated view from case studies," HSE Working papers WP BRP 11/MAN/2013, National Research University Higher School of Economics.
- Figueiredo, Paulo N., 2013. "Beyond technological catch-up: An empirical investigation of further innovative capability accumulation outcomes in latecomer firms with evidence from Brazil," MERIT Working Papers 048, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.