Coordination of R&D activities and communities of practice in multinational companies

Because of the globalization of value-chains, the complexity of organizational structures of multinational enterprises (MNEs) has considerably increased. Innovation processes are particularly concerned, since they involve an increasing number of actors, located in different parts of the world. In order to remain competitive, MNEs need to combine both internal and external resources to optimize their innovation processes. This paper focuses on coordination mechanisms that companies can use to efficiently manage them. The authors highlight recent trends concerning the location of R&D activities of MNEs, showing their increasing geographical dispersion. Today, R&D units abroad contribute more significantly to innovation outcomes, which has important implications for the management of innovation processes. To illustrate these trends, the authors analyze innovation processes developed by the French Groupe SEB, which is a world leader in the small household equipment and cookware industry. The company is currently changing the organization of innovation processes, attempting to develop new tools and practices. It has recently created a community of practice whose objective is to promote interaction between actors involved in innovation. Interviews conducted with members of the new community allow to identify major characteristics and benefits of this new tool.