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Individualism and Interdependence in the Technological Development of MNEs: The Strategic Positioning of R&D in Overseas Subsidiaries

In: Multinational Corporate Evolution and Subsidiary Development

Author

Listed:
  • Marina Papanastassiou
  • Robert Pearce

Abstract

The growth of decentralised R&D in MNEs is central to the ways these companies approach the new competitive pressures of the global economy of the late twentieth century.(For recent evidence and analysis of R&D in MNEs see Dunning (1994), Dunning and Narula (1995), Fors (1996), Hakanson and Nobel (1993a, 1993b), Howells and Wood (1993), Papanastassiou (1995), Pearce (1989), Pearce and Singh (1992a, 1992b), Taggart (1993).) As these companies seek to define positions for technology in the generation of sustained competitiveness, roles for overseas R&D laboratories can emerge at three distinct levels. In the short term, the pressures of global competition mean that MNEs need to produce their well-established products as effectively as possible. Laboratories operating within the subsidiaries that produce such products may support their operations by assisting in the adaptation of the manufacturing process to host-country conditions and of the products to local tastes. However, to carry competitiveness into the medium term, MNEs need to substantially upgrade their product range, introducing new generations that embody new concepts that extend the industry’s scope.

Suggested Citation

  • Marina Papanastassiou & Robert Pearce, 1998. "Individualism and Interdependence in the Technological Development of MNEs: The Strategic Positioning of R&D in Overseas Subsidiaries," Palgrave Macmillan Books, in: Julian Birkinshaw & Neil Hood (ed.), Multinational Corporate Evolution and Subsidiary Development, chapter 3, pages 50-75, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-26467-4_3
    DOI: 10.1007/978-1-349-26467-4_3
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    Citations

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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 & Francis Journals, vol. 8(1), pages 51-73.
    2. Ivarsson, Inge & Jonsson, Thommy, 2003. "Local technological competence and asset-seeking FDI: an empirical study of manufacturing and wholesale affiliates in Sweden," International Business Review, Elsevier, vol. 12(3), pages 369-386, June.
    3. Kappen, Philip, 2011. "Competence-creating overlaps and subsidiary technological evolution in the multinational corporation," Research Policy, Elsevier, vol. 40(5), pages 673-686, June.
    4. Papanastassiou, Marina, 1999. "Technology and production strategies of multinational enterprise (MNE) subsidiaries in Europe," International Business Review, Elsevier, vol. 8(2), pages 213-232, April.
    5. Pietro Moncada-Paterno-Castello & Peter Voigt & Marco Vivarelli, 2011. "Evolution of Globalised business R&D: Features, drivers, impacts," JRC Working Papers on Corporate R&D and Innovation 2011-02, Joint Research Centre.
    6. Dimitris Manolopoulos & Marina Papanastassiou & Robert Pearce, 2007. "Knowledge-related competitiveness and the roles of multinationals’ R&D in a peripheral European economy: Survey analysis of Greece," Management International Review, Springer, vol. 47(5), pages 661-682, September.
    7. Filippaios, Fragkiskos & Papanastassiou, Marina & Pearce, Robert & Rama, Ruth, 2009. "New forms of organisation and R&D internationalisation among the world's 100 largest food and beverages multinationals," Research Policy, Elsevier, vol. 38(6), pages 1032-1043, July.
    8. Håkanson, Lars & Kappen, Philip, 2016. "Live and let die: A survival analysis of foreign R&D units in Swedish MNEs," International Business Review, Elsevier, vol. 25(6), pages 1185-1196.
    9. Paterson, S. L. & Brock, D. M., 2002. "The development of subsidiary-management research: review and theoretical analysis," International Business Review, Elsevier, vol. 11(2), pages 139-163, April.

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