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Motivating proactive subsidiary innovation: Agent-based theory and socialization models in global R&D

  • Johnson, William H.A.
  • Medcof, John W.
Registered author(s):

    An integration of agency theory and socialization models is developed and used to explain the types of governance and organizational structures associated with self-initiated subsidiary innovation. This theorizing suggests that: 1) The hub structure is the greatest user of behavior-based contracting and engenders the fewest self-initiated innovations; 2) The federation structure is the greatest user of outcome-based contracting and engenders the most self-initiated innovations, but these are primarily oriented to business level strategy rather than corporate; and, 3) The network structure is the greatest user of goal internalization and is the strongest generator of self-initiated innovations which are oriented to corporate-level strategy. The empirical evidence from extant studies of other researchers in the field is consistent with these propositions. Implications for management practice, research and theory are discussed in the paper.

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    File URL: http://www.sciencedirect.com/science/article/pii/S1075425307000841
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    Article provided by Elsevier in its journal Journal of International Management.

    Volume (Year): 13 (2007)
    Issue (Month): 4 (December)
    Pages: 472-487

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    Handle: RePEc:eee:intman:v:13:y:2007:i:4:p:472-487
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    1. Anne-Wil Harzing, 2000. "An Empirical Analysis and Extension of the Bartlett and Ghoshal Typology of Multinational Companies," Journal of International Business Studies, Palgrave Macmillan, vol. 31(1), pages 101-120, March.
    2. Neil Hood & James Taggart, 1999. "Subsidiary Development in German and Japanese Manufacturing Subsidiaries in the British Isles," Regional Studies, Taylor & Francis Journals, vol. 33(6), pages 513-528.
    3. Kendall Roth & Allen J Morrison, 1990. "An Empirical Analysis of the Integration-Responsiveness Framework in Global Industries," Journal of International Business Studies, Palgrave Macmillan, vol. 21(4), pages 541-564, December.
    4. Wilbur Chung, 2001. "Identifying Technology Transfer in Foreign Direct Investment: Influence of Industry Conditions and Investing Firm Motives," Journal of International Business Studies, Palgrave Macmillan, vol. 32(2), pages 211-229, June.
    5. Julian Birkinshaw, 1996. "How Multinational Subsidiary Mandates are Gained and Lost," Journal of International Business Studies, Palgrave Macmillan, vol. 27(3), pages 467-495, September.
    6. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    7. Siew Meng Leong & Chin Tiong Tan, 1993. "Managing Across Borders: An Empirical Test of the Bartlett and Ghoshal [1989] Organizational Typology," Journal of International Business Studies, Palgrave Macmillan, vol. 24(3), pages 449-464, September.
    8. Kendall Roth & David M Schweiger & Allen J Morrison, 1991. "Global Strategy Implementation at the Business Unit Level: Operational Capabilities and Administrative Mechanisms," Journal of International Business Studies, Palgrave Macmillan, vol. 22(3), pages 369-402, September.
    9. Sumantra Ghoshal & Christopher A Bartlett, 1988. "Creation, Adoption and Diffusion of Innovations by Subsidiaries of Multinational Corporations," Journal of International Business Studies, Palgrave Macmillan, vol. 19(3), pages 365-388, September.
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