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Embeddedness of innovation receivers in the multinational corporation: Effects on business performance

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  • Hallin, Christina
  • Holm, Ulf
  • Sharma, Dharma Deo

Abstract

This paper investigates how relationship embeddedness in MNC subsidiaries' corporate and external networks influences the contribution of innovation transfer to the recipient subsidiary's business performance. OLS regressions using data on the intra-MNC transfer of 224 innovations indicate that the embeddedness of a subsidiary's relationships in the corporate and external network positively affects the received innovation's contribution to business performance. More detailed analysis demonstrates that the positive link between a subsidiary's embeddedness in the external network and the contribution to business performance of receiving an innovation is negatively affected when the innovation is unique compared with other innovations on the market.

Suggested Citation

  • Hallin, Christina & Holm, Ulf & Sharma, Dharma Deo, 2011. "Embeddedness of innovation receivers in the multinational corporation: Effects on business performance," International Business Review, Elsevier, vol. 20(3), pages 362-373, June.
  • Handle: RePEc:eee:iburev:v:20:y:2011:i:3:p:362-373
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    Cited by:

    1. Utz Schäffer & Matthias D. Mahlendorf & Jochen Rehring, 2014. "Does the Interactive Use of Headquarter Performance Measurement Systems in Foreign Subsidiaries Endanger the Potential to Profit from Local Relationships?," Australian Accounting Review, CPA Australia, vol. 24(1), pages 21-38, March.
    2. Pippel, Gunnar, 2012. "The Impact of R&D Collaboration Networks on the Performance of Firms and Regions: A Meta-Analysis of the Evidence," IWH Discussion Papers 14/2012, Halle Institute for Economic Research (IWH).
    3. Demeter, Krisztina & Szász, Levente & Rácz, Béla-Gergely, 2016. "The impact of subsidiaries’ internal and external integration on operational performance," International Journal of Production Economics, Elsevier, vol. 182(C), pages 73-85.
    4. Oehmichen, Jana & Puck, Jonas, 2016. "Embeddedness, Ownership Mode and Dynamics, and the Performance of MNE Subsidiaries," Journal of International Management, Elsevier, vol. 22(1), pages 17-28.
    5. Wen-Bin Chuang & Hui-lin Lin & Chien-Wei Wu, 2015. "Does Institutional Quality Strengthen The Positive Influence of Offshore R&D Strategy on the Firm Productivity?," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 5(2), pages 279-294, February.
    6. Pippel, Gunnar, 2013. "Does Partner Type Matter in R&D Collaboration for Environmental Innovation?," IWH Discussion Papers 5/2013, Halle Institute for Economic Research (IWH).
    7. To-Han Chang & Wen-Bin Chuang, 2016. "Overseas R&D and Taiwan-Based Firm?s Productivity - Does Internal Technological Capability Matter?," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 6(9), pages 499-509, September.
    8. repec:spr:manint:v:57:y:2017:i:3:d:10.1007_s11575-016-0298-3 is not listed on IDEAS
    9. Colakoglu, Saba & Yamao, Sachiko & Lepak, David P., 2014. "Knowledge creation capability in MNC subsidiaries: Examining the roles of global and local knowledge inflows and subsidiary knowledge stocks," International Business Review, Elsevier, vol. 23(1), pages 91-101.
    10. Melanie E. Zaglia & Martin K.J. Waiguny & Dagmar Abfalter & Julia Müller, 2015. "The influence of online social networks on performance of small and medium enterprises: an empirical investigation of the online business to business network XING," International Journal of Entrepreneurial Venturing, Inderscience Enterprises Ltd, vol. 7(1), pages 1-23.

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