Using Multi-hub Structures for international R&D Organizational Inertia and the Challenges of Implementation
AbstractOver the last decade or so, multinational enterprises (MNEs) have shifted from centralised hub structures to multi-hub structures. While these new structures provide greater potential for crossfertilization of technologies and access to location-specific competences, promoting effective knowledge transfer within an MNE – especially in their R&D activities - presents significant managerial challenges. Using evidence collected on the R&D activities of MNEs in the pharmaceutical sector, this paper analyses the challenges associated with complexities of promoting and integrating knowledge flows in the face of inter-unit geographical, organizational and technological distance. MNEs are faced with organizational inertia that hinders efficient lateral communication and inter-unit knowledge transfer, and the evidence suggests that while socialization mechanisms help overcoming some of these bottlenecks, there remain a number of obstacles in optimising knowledge flows in physically and technologically dispersed R&D facilities
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Bibliographic InfoPaper provided by DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies in its series DRUID Working Papers with number 05-13.
Date of creation: 2005
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Multinational enterprises; R&D; Geographical distance;
Other versions of this item:
- Criscuolo,Paola & Narula,Rajneesh, 2005. "Using multi-hub structures for international R&D: Organizational inertia and the challenges of implementation," Research Memorandum, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT) 025, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-09-11 (All new papers)
- NEP-INO-2005-09-11 (Innovation)
- NEP-TID-2005-09-11 (Technology & Industrial Dynamics)
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