Why do transnational approaches to international innovation fail?
AbstractThe transnational corporation paradigm is increasingly at odds with empirical findings regarding international innovation strategies. Analysing a longitudinal case study, we show that a firm's international R&D subsidiaries can be a powerful force that can shape strategy even more than headquarters. On the basis of a literature review that identifies factors and mechanisms by which the firm's subsidiaries are likely to exert this influence, we explore these factors and mechanisms by applying them to our case. Our findings show that international innovation strategies are unlikely to succeed if international R&D subsidiaries use their capabilities and market power to oppose their implementation.
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Bibliographic InfoArticle provided by Elsevier in its journal Research in International Business and Finance.
Volume (Year): 23 (2009)
Issue (Month): 2 (June)
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Web page: http://www.elsevier.com/locate/ribaf
Innovation International management R&D Strategy;
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