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
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
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
Date of revision:
Contact details of provider:
Web page: http://www.druid.dk/
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 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)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gassmann, Oliver & von Zedtwitz, Maximilian, 1999. "New concepts and trends in international R&D organization," Research Policy, Elsevier, vol. 28(2-3), pages 231-250, March.
- Henderson, Rebecca. & Cockburn, Iain., 1994. "Measuring competence? : exploring firm effects in pharmaceutical research," Working papers 3712-94., Massachusetts Institute of Technology (MIT), Sloan School of Management.
- Arora, Ashish & Gambardella, Alfonso, 1994. "The changing technology of technological change: general and abstract knowledge and the division of innovative labour," Research Policy, Elsevier, vol. 23(5), pages 523-532, September.
- Hannan, Michael T. & Polos, Laszlo & Carroll, Glenn R., 2002. "Structural Inertia and Organizational Change Revisited III: The Evolution of Organizational Inertia," Research Papers 1734, Stanford University, Graduate School of Business.
- Chiesa, Vittorio, 1996. "Separating research from development: Evidence from the pharmaceutical industry," European Management Journal, Elsevier, vol. 14(6), pages 638-647, December.
- Ajay Agrawal & Iain Cockburn & John McHale, 2003. "Gone But Not Forgotten: Labor Flows, Knowledge Spillovers, and Enduring Social Capital," NBER Working Papers 9950, National Bureau of Economic Research, Inc.
- Nightingale, Paul, 2000. "Economies of Scale in Experimentation: Knowledge and Technology in Pharmaceutical R&D," Industrial and Corporate Change, Oxford University Press, vol. 9(2), pages 315-59, June.
- Bruce Kogut & Udo Zander, 1993. "Knowledge of the Firm and the Evolutionary Theory of the Multinational Corporation," Journal of International Business Studies, Palgrave Macmillan, vol. 24(4), pages 625-645, December.
- Howells, Jeremy R., 1995. "Going global: The use of ICT networks in research and development," Research Policy, Elsevier, vol. 24(2), pages 169-184, March.
- Reger, Guido, 2004. "Coordinating globally dispersed research centres of excellence--the case of Philips Electronics," Journal of International Management, Elsevier, vol. 10(1), pages 51-76.
- Dorra Yahiaoui & Hela Chebbi, 2008. "The limits of top-down transfers within a multinational corporation: the need for knowledge hybridization," Journal of Innovation Economics, De Boeck Université, vol. 0(2), pages 85-104.
- Narula, Rajneesh & Michel, Julie, 2009. "Reverse knowledge transfer and its implications for European policy," MERIT Working Papers 035, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
- TODO Yasuyuki & SHIMIZUTANI Satoshi, 2007. "Overseas R&D Activities and Home Productivity Growth: Evidence from Japanese Firm-Level Data," Discussion papers 07008, Research Institute of Economy, Trade and Industry (RIETI).
- Borje Johansson & Hans Loof, 2008.
"Innovation Activities Explained By Firm Attributes And Location,"
Economics of Innovation and New Technology,
Taylor & Francis Journals, vol. 17(6), pages 533-552.
- Johansson, Börje & Lööf, Hans, 2006. "Innovation Activities Explained By Firm Attributes And Location," Working Paper Series in Economics and Institutions of Innovation 63, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
- Narula, Rajneesh, 2013. "Exploring the paradox of competence-creating subsidiaries: balancing bandwidth and dispersion in MNEs," MERIT Working Papers 046, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
- Fragiskos Archontakis & Nikos Varsakelis, 2011. "US patents abroad: Does gravity matter?," The Journal of Technology Transfer, Springer, vol. 36(4), pages 404-416, August.
- Vandana Ujjual & Parimal Patel & Rishikesha T. Krishnan & Srivardhini Keshavamurthy & RueyLin Hsiao & Frank Yan Zhao, 2011. "Management and Organisation of Knowledge Creation in Emerging Markets: a Perspective from subsidiaries of EU MNEs," SPRU Working Paper Series 192, SPRU - Science and Technology Policy Research, University of Sussex.
- Suma Athreye & Martha Prevezer, 2008. "R&D offshoring and the domestic science base in India and China," Working Papers 26, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Keld Laursen).
If references are entirely missing, you can add them using this form.