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The Performance Effects of Headquarters’ Involvement in Lateral Innovation Transfers in Multinational Corporations

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  • Mo Yamin

    (University of Manchester
    Uppsala University)

  • Hsin-Ju ‘Stephie’ Tsai

    (University of Manchester)

  • Ulf Holm

    (Uppsala University)

Abstract

Developing an analytical framework to help examine the impact of HQs direct involvement in lateral innovation transfers on efficiency and effectiveness of Develop hypotheses which are tested by multiple regression analyses on data relating to 129 lateral innovation transfers in multinational corporations Three key findings: dyadic willingness positively affects transfer efficiency and effectiveness willingness HQ involvement negatively effects transfer efficiency; HQ involvement negatively moderates the effect of willingness on transfer effectiveness HQ face a dilemma in managing lateral transfers: on the one hand, the network structure that typifies many MNCs has beneficial impacts on the performance of the transfer process; on the other hand the HQ need to ensure that lateral transfers initiated by subsidiaries (‘organic’ transfers) are in line with MNC strategy. However the findings from our study strongly suggest that HQ direct involvement in the transfer process is at best a very blunt instrument for achieving a resolution of this dilemma.

Suggested Citation

  • Mo Yamin & Hsin-Ju ‘Stephie’ Tsai & Ulf Holm, 2011. "The Performance Effects of Headquarters’ Involvement in Lateral Innovation Transfers in Multinational Corporations," Management International Review, Springer, vol. 51(2), pages 157-177, April.
    • Handle: RePEc:spr:manint:v:51:y:2011:i:2:d:10.1007_s11575-011-0070-7
    DOI: 10.1007/s11575-011-0070-7
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    Cited by:

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    2. Su, Cong & Kong, Lingshuang & Ciabuschi, Francesco & Holm, Ulf, 2020. "Demand and willingness for knowledge transfer in springboard subsidiaries of Chinese multinationals," Journal of Business Research, Elsevier, vol. 109(C), pages 297-309.
    3. Alain Verbeke & Vernon Bachor & Brenda Nguyen, 2013. "Procedural Justice, Not Absorptive Capacity, Matters in Multinational Enterprise ICT Transfers," Management International Review, Springer, vol. 53(4), pages 535-554, August.
    4. Sheng, Margaret L., 2019. "Foreign tacit knowledge and a capabilities perspective on MNEs’ product innovativeness: Examining source-recipient knowledge absorption platforms," International Journal of Information Management, Elsevier, vol. 44(C), pages 154-163.
    5. Esther Tippmann & Pamela Sharkey Scott & Vincent Mangematin, 2014. "Subsidiary managers’ knowledge mobilizations: Unpacking emergent knowledge flows," Post-Print hal-00864324, HAL.
    6. 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.
    7. Cher-Hung Tseng, 2015. "Determinants of MNC’s Knowledge Inflows to Subsidiaries: A Perspective on Internalization Advantages," Management International Review, Springer, vol. 55(1), pages 119-150, February.
    8. Michailova, Snejina & Zhan, Wu, 2015. "Dynamic capabilities and innovation in MNC subsidiaries," Journal of World Business, Elsevier, vol. 50(3), pages 576-583.
    9. Christine Holmström Lind & Olivia H. Kang, 2017. "The Value-Adding Role of the Corporate Headquarters in Innovation Transfer Processes: The Issue of Headquarters Knowledge Situation," Management International Review, Springer, vol. 57(4), pages 571-602, August.
    10. Wu, Yan & Strange, Roger & Shirodkar, Vikrant, 2022. "Lateral knowledge transfer and foreign affiliate performance: The importance of affiliate strategic roles," Economic Modelling, Elsevier, vol. 116(C).
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    12. Reichstein-Scholz, Harriet & Giroud, Axèle & Yamin, Mo & Andersson, Ulf, 2021. "Sales to centre stage! Determinants of the division in strategic sales decisions within the MNE," International Business Review, Elsevier, vol. 30(6).

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