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 cross-fertilization of technologies and access to locationspecific 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 Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology in its series Research Memoranda with number 025.
Date of creation: 2005
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- Paola Criscuolo & Rajneesh Narula, 2005. "Using Multi-hub Structures for international R&D Organizational Inertia and the Challenges of Implementation," DRUID Working Papers 05-13, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
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