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 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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