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R&D co-practice and ‘reverse’ knowledge integration in multinational firms

Author

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  • Tony S Frost

    (Richard Ivey School of Business, University of Western Ontario, London, Canada)

  • Changhui Zhou

    (Guanghua School of Management, Peking University, Beijing, China)

Abstract

This paper contributes to the developing literature on the management of distributed innovation in multinational firms. We focus on a specific organizational mechanism, R&D co-practice, which we believe is an important facilitator of knowledge integration in multinationals with global innovation strategies. In our formulation, R&D co-practice (joint technical activities between units) increases levels of absorptive capacity and social capital among participating units, thus increasing the likelihood that they will share knowledge at future time periods. We find strong support for this hypothesis through an empirical analysis of ‘reverse’ (subsidiary to headquarters) knowledge integration in two sectors – automotive and pharmaceuticals – over a 21-year period. Journal of International Business Studies (2005) 36, 676–687. doi:10.1057/palgrave.jibs.8400168

Suggested Citation

  • Tony S Frost & Changhui Zhou, 2005. "R&D co-practice and ‘reverse’ knowledge integration in multinational firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(6), pages 676-687, November.
    • Handle: RePEc:pal:jintbs:v:36:y:2005:i:6:p:676-687
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    Citations

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    Cited by:

    1. René Belderbos & Boris Lokshin & Bert Sadowski, 2015. "The returns to foreign R&D," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 46(4), pages 491-504, May.
    2. Smitha R. Nair & Mehmet Demirbag & Kamel Mellahi, 2015. "Reverse Knowledge Transfer from Overseas Acquisitions: A Survey of Indian MNEs," Management International Review, Springer, vol. 55(2), pages 277-301, April.
    3. Singh, Jasjit, 2008. "Distributed R&D, cross-regional knowledge integration and quality of innovative output," Research Policy, Elsevier, vol. 37(1), pages 77-96, February.
    4. McGuinness, Martina & Demirbag, Mehmet & Bandara, Sasanka, 2013. "Towards a multi-perspective model of reverse knowledge transfer in multinational enterprises: A case study of Coats plc," European Management Journal, Elsevier, vol. 31(2), pages 179-195.
    5. Marco-Lajara, Bartolomé & Zaragoza-Sáez, Patrocinio del Carmen & Claver-Cortés, Enrique & Úbeda-García, Mercedes & García-Lillo, Francisco, 2017. "Tourist districts and internationalization of hotel firms," Tourism Management, Elsevier, vol. 61(C), pages 451-464.
    6. Bergek, Anna & Bruzelius, Maria, 2010. "Are patents with multiple inventors from different countries a good indicator of international R&D collaboration? The case of ABB," Research Policy, Elsevier, vol. 39(10), pages 1321-1334, December.
    7. Zeng, Rong & Grøgaard, Birgitte & Steel, Piers, 2018. "Complements or substitutes? A meta-analysis of the role of integration mechanisms for knowledge transfer in the MNE network," Journal of World Business, Elsevier, vol. 53(4), pages 415-432.
    8. Phillip C. Nell & Philip Kappen & Tomi Laamanen, 2017. "Reconceptualising Hierarchies: The Disaggregation and Dispersion of Headquarters in Multinational Corporations," Journal of Management Studies, Wiley Blackwell, vol. 54(8), pages 1121-1143, December.
    9. Marino, Alba & Mudambi, Ram & Perri, Alessandra & Scalera, Vittoria G., 2020. "Ties that bind: Ethnic inventors in multinational enterprises’ knowledge integration and exploitation," Research Policy, Elsevier, vol. 49(9).
    10. Riviere, Monica & Suder, Gabriele, 2016. "Perspectives on strategic internationalization: Developing capabilities for renewal," International Business Review, Elsevier, vol. 25(4), pages 847-858.
    11. Blomkvist, Katarina & Kappen, Philip & Zander, Ivo, 2017. "Gone are the creatures of yesteryear? On the diffusion of technological capabilities in the ‘modern’ MNC," Journal of World Business, Elsevier, vol. 52(1), pages 1-16.
    12. Stek, Pieter E. & van Geenhuizen, Marina S., 2016. "The influence of international research interaction on national innovation performance: A bibliometric approach," Technological Forecasting and Social Change, Elsevier, vol. 110(C), pages 61-70.
    13. Alnuaimi, Tufool & Opsahl, Tore & George, Gerard, 2012. "Innovating in the periphery: The impact of local and foreign inventor mobility on the value of Indian patents," Research Policy, Elsevier, vol. 41(9), pages 1534-1543.
    14. Munjal, Surender & Andersson, Ulf & Pereira, Vijay & Budhwar, Pawan, 2021. "Exploring reverse knowledge transfer and asset augmentation strategy by developed country MNEs: Case study evidence from the Indian pharmaceutical industry," International Business Review, Elsevier, vol. 30(6).
    15. Borini, Felipe Mendes & de Miranda Oliveira, Moacir & Silveira, Franciane Freitas & de Oliveira Concer, Ronald, 2012. "The reverse transfer of innovation of foreign subsidiaries of Brazilian multinationals," European Management Journal, Elsevier, vol. 30(3), pages 219-231.
    16. Un, C. Annique & Rodríguez, Alicia, 2018. "Local and Global Knowledge Complementarity: R&D Collaborations and Innovation of Foreign and Domestic Firms," Journal of International Management, Elsevier, vol. 24(2), pages 137-152.
    17. Song, Jaeyong & Asakawa, Kazuhiro & Chu, Youngeun, 2011. "What determines knowledge sourcing from host locations of overseas R&D operations?: A study of global R&D activities of Japanese multinationals," Research Policy, Elsevier, vol. 40(3), pages 380-390, April.
    18. Apriliyanti, Indri Dwi & Alon, Ilan, 2017. "Bibliometric analysis of absorptive capacity," International Business Review, Elsevier, vol. 26(5), pages 896-907.
    19. Thomas J. Hannigan & Alessandra Perri & Vittoria Giada Scalera, 2016. "The Dispersed Multinational: Does Connectedness Across Spatial Dimensions Lead to Broader Technological Search?," Working Papers 11, Department of Management, Università Ca' Foscari Venezia.
    20. Brenda Bos & Dries Faems & Florian Noseleit, 2017. "Alliance Concentration in Multinational Companies: Examining Alliance Portfolios, Firm Structure, and Firm Performance," Strategic Management Journal, Wiley Blackwell, vol. 38(11), pages 2298-2309, November.
    21. Castellani, Davide & Perri, Alessandra & Scalera, Vittoria G., 2022. "Knowledge integration in multinational enterprises: The role of inventors crossing national and organizational boundaries," Journal of World Business, Elsevier, vol. 57(3).
    22. Liu, C.-L.E., 2012. "An investigation of relationship learning in cross-border buyer–supplier relationships: The role of trust," International Business Review, Elsevier, vol. 21(3), pages 311-327.
    23. Lee, Jeoung Yul & Jiménez, Alfredo & Bhandari, Krishna Raj, 2020. "Subsidiary roles and dual knowledge flows between MNE subsidiaries and headquarters: The moderating effects of organizational governance types," Journal of Business Research, Elsevier, vol. 108(C), pages 188-200.
    24. Liu, Ting & Li, Xizhuo, 2022. "How Do MNCs Conduct Local Technological Innovation in a Host Country? An Examination From Subsidiaries' Perspective," Journal of International Management, Elsevier, vol. 28(3).
    25. Hurtado-Torres, Nuria E. & Aragón-Correa, J. Alberto & Ortiz-de-Mandojana, Natalia, 2018. "How does R&D internationalization in multinational firms affect their innovative performance? The moderating role of international collaboration in the energy industry," International Business Review, Elsevier, vol. 27(3), pages 514-527.

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