IDEAS home Printed from https://ideas.repec.org/a/eee/intman/v17y2011i2p114-129.html
   My bibliography  Save this article

Coordinating decentralized research and development laboratories: A survey analysis

Author

Listed:
  • Manolopoulos, Dimitris
  • Söderquist, Klas Eric
  • Pearce, Robert

Abstract

The growing internationalization and strategic diversity of research and development (R&D) activities create important managerial challenges for the globally competing multinational enterprise (MNE). Driven by recent theoretical considerations and empirical studies, we provide complementary insights to the international management literature by investigating the impact of strategic variables (roles of decentralized R&D units) and some commonly studied FDI characteristics (industry, size and country of origin) on the coordination patterns used in the context of international R&D. As a conceptual background, five categories of coordination mechanisms are generated (structural, formal hierarchical, people-based, social and information technology platform infrastructures). Our findings, based on a quantitative inductive analysis, reveal that laboratory-related characteristics (roles, age and size) stand out as the most influential determinants of coordination mechanisms and instruments. The study also highlights that MNEs are moving towards a more complicated and multifaceted integration pattern of their decentralized technology strategies. Implications for international managers, academic researches and decision makers are discussed.

Suggested Citation

  • Manolopoulos, Dimitris & Söderquist, Klas Eric & Pearce, Robert, 2011. "Coordinating decentralized research and development laboratories: A survey analysis," Journal of International Management, Elsevier, vol. 17(2), pages 114-129, June.
    • Handle: RePEc:eee:intman:v:17:y:2011:i:2:p:114-129
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1075425310000761
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gerybadze, Alexander & Reger, Guido, 1999. "Globalization of R&D: recent changes in the management of innovation in transnational corporations," Research Policy, Elsevier, vol. 28(2-3), pages 251-274, March.
    2. Ashish Arora & Andrea Fosfuri, 2000. "Wholly Owned Subsidiary Versus Technology Licensing in the Worldwide Chemical Industry," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 31(4), pages 555-572, December.
    3. Walter Kuemmerle, 1999. "The Drivers of Foreign Direct Investment into Research and Development: An Empirical Investigation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 30(1), pages 1-24, March.
    4. Frédérique Sachwald, 2008. "Location choices within global innovation networks: the case of Europe," The Journal of Technology Transfer, Springer, vol. 33(4), pages 364-378, August.
    5. Yang, Zhilin & Wang, Xuehua & Su, Chenting, 2006. "A review of research methodologies in international business," International Business Review, Elsevier, vol. 15(6), pages 601-617, December.
    6. Björn Alecke & Christoph Alsleben & Frank Scharr & Gerhard Untiedt, 2006. "Are there really high-tech clusters? The geographic concentration of German manufacturing industries and its determinants," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 40(1), pages 19-42, March.
    7. Sumantra Ghoshal & Harry Korine & Gabriel Szulanski, 1994. "Interunit Communication in Multinational Corporations," Management Science, INFORMS, vol. 40(1), pages 96-110, January.
    8. Jonathon N. Cummings, 2004. "Work Groups, Structural Diversity, and Knowledge Sharing in a Global Organization," Management Science, INFORMS, vol. 50(3), pages 352-364, March.
    9. Paola Criscuolo & Rajneesh Narula, 2007. "Using multi-hub structures for international R&D: Organisational inertia and the challenges of implementation," Management International Review, Springer, vol. 47(5), pages 639-660, September.
    10. Mirza, Hafiz & Freeman, Nick J., 2007. "Foreign direct investment in East Asia's transitional economies: Perspectives on development and transition," International Business Review, Elsevier, vol. 16(2), pages 139-141, April.
    11. Gassmann, Oliver & von Zedtwitz, Maximilian, 1999. "New concepts and trends in international R&D organization," Research Policy, Elsevier, vol. 28(2-3), pages 231-250, March.
    12. Hakanson, Lars & Nobel, Robert, 1993. "Foreign research and development in Swedish multinationals," Research Policy, Elsevier, vol. 22(5-6), pages 373-396, November.
    13. Jon I Martinez & J Carlos Jarillo, 1991. "Coordination Demands of International Strategies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 22(3), pages 429-444, September.
    14. William G. Egelhoff, 1988. "Strategy and structure in multinational corporations: A revision of the stopford and wells model," Strategic Management Journal, Wiley Blackwell, vol. 9(1), pages 1-14, January.
    15. Caves, Richard E, 1971. "International Corporations: The Industrial Economics of Foreign Investment," Economica, London School of Economics and Political Science, vol. 38(149), pages 1-27, February.
    16. Pearce, Robert D., 1999. "Decentralised R&D and strategic competitiveness: globalised approaches to generation and use of technology in multinational enterprises (MNEs)," Research Policy, Elsevier, vol. 28(2-3), pages 157-178, March.
    17. Reger, Guido, 2004. "Coordinating globally dispersed research centres of excellence--the case of Philips Electronics," Journal of International Management, Elsevier, vol. 10(1), pages 51-76.
    18. B R Baliga & Alfred M Jaeger, 1984. "Multinational Corporations: Control Systems and Delegation Issues," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 15(2), pages 25-40, June.
    19. René Belderbos, 2003. "Entry mode, organizational learning, and R&D in foreign affiliates: evidence from Japanese firms," Strategic Management Journal, Wiley Blackwell, vol. 24(3), pages 235-259, March.
    20. Anabel Marin & Martin Bell, 2006. "Technology spillovers from Foreign Direct Investment (FDI): the active role of MNC subsidiaries in Argentina in the 1990s," Journal of Development Studies, Taylor & Francis Journals, vol. 42(4), pages 678-697.
    21. Jon I Martinez & J Carlos Jarillo, 1989. "The Evolution of Research on Coordination Mechanisms in Multinational Corporations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 20(3), pages 489-514, September.
    22. Hirschey, Robert C & Caves, Richard E, 1981. "Research and Transfer of Technology by Multinational Enterprises," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 43(2), pages 115-130, May.
    23. K Kim & J-H Park & J E Prescott, 2003. "The global integration of business functions: a study of multinational businesses in integrated global industries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(4), pages 327-344, July.
    24. Ingmar Björkman & Wilhelm Barner-Rasmussen & Li Li, 2004. "Managing knowledge transfer in MNCs: the impact of headquarters control mechanisms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(5), pages 443-455, September.
    25. Marschan-Piekkari, Rebecca & Welch, Denice & Welch, Lawrence, 1999. "In the shadow: the impact of language on structure, power and communication in the multinational," International Business Review, Elsevier, vol. 8(4), pages 421-440, August.
    26. Ambos, Bjorn, 2005. "Foreign direct investment in industrial research and development: A study of German MNCs," Research Policy, Elsevier, vol. 34(4), pages 395-410, May.
    27. Robert C Ronstadt, 1978. "International R & D: The Establishment and Evolution of Research and Development Abroad by Seven U.S. Multinationals," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 9(1), pages 7-24, March.
    28. von Zedtwitz, Maximilian & Gassmann, Oliver, 2002. "Market versus technology drive in R&D internationalization: four different patterns of managing research and development," Research Policy, Elsevier, vol. 31(4), pages 569-588, May.
    29. Welch, Denice E. & Welch, Lawrence S., 2006. "Commitment for hire? The viability of corporate culture as a MNC control mechanism," International Business Review, Elsevier, vol. 15(1), pages 14-28, February.
    30. Paola Criscuolo & Rajneesh Narula & Bart Verspagen, 2005. "Role of home and host country innovation systems in r&d internationalisation: a patent citation analysis," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 14(5), pages 417-433.
    31. Raymond Vernon, 1966. "International Investment and International Trade in the Product Cycle," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 80(2), pages 190-207.
    32. Julia Manea & Robert Pearce, 2004. "Multinationals and Transition," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-51181-1.
    33. Dimitratos, Pavlos & Lioukas, Spyros & Carter, Sara, 2004. "The relationship between entrepreneurship and international performance: the importance of domestic environment," International Business Review, Elsevier, vol. 13(1), pages 19-41, February.
    34. Harzing, Anne-Wil, 1997. "Response rates in international mail surveys: Results of a 22-country study," International Business Review, Elsevier, vol. 6(6), pages 641-665, December.
    35. Eckhardt Bode, 2004. "The spatial pattern of localized R&D spillovers: an empirical investigation for Germany," Journal of Economic Geography, Oxford University Press, vol. 4(1), pages 43-64, January.
    36. John H. Dunning & Sarianna M. Lundan, 2009. "The Internationalization of Corporate R&D: A Review of the Evidence and Some Policy Implications for Home Countries1," Review of Policy Research, Policy Studies Organization, vol. 26(1‐2), pages 13-33, January.
    37. Björn Ambos & Bodo B. Schlegelmilch, 2007. "Innovation and control in the multinational firm: A comparison of political and contingency approaches," Strategic Management Journal, Wiley Blackwell, vol. 28(5), pages 473-486, May.
    38. Ghauri, Pervez, 1992. "New structures in MNCs based in small countries: A network approach," European Management Journal, Elsevier, vol. 10(3), pages 357-364, September.
    39. John Cantwell & Lucia Piscitello, 2007. "Attraction and deterrence in the location of foreign-owned R&D activities: the role of positive and negative spillovers," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 1(1), pages 83-111.
    40. David Cray, 1984. "Control and Coordination in Multinational Corporations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 15(2), pages 85-98, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Marina Papanastassiou & Robert Pearce & Antonello Zanfei, 2020. "Changing perspectives on the internationalization of R&D and innovation by multinational enterprises: A review of the literature," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 623-664, June.
    2. Lusine Arzumanyan & Ulrike Mayrhofer & Christopher Melin, 2011. "Coordinating R&D activities in multinational companies: towards new tools and practices?," Post-Print halshs-00690220, HAL.
    3. Schmid, Stefan & Grosche, Philipp & Mayrhofer, Ulrike, 2016. "Configuration and coordination of international marketing activities," International Business Review, Elsevier, vol. 25(2), pages 535-547.
    4. Rong (Ratchel) Zeng & Birgitte Grøgaard & Ingmar Björkman, 2023. "Navigating MNE control and coordination: A critical review and directions for future research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(9), pages 1599-1622, December.
    5. Athreye, Suma & Batsakis, Georgios & Singh, Satwinder, 2016. "Local, global, and internal knowledge sourcing: The trilemma of foreign-based R&D subsidiaries," Journal of Business Research, Elsevier, vol. 69(12), pages 5694-5702.
    6. Maximilian Palmié & Marco Zeschky & Stephan Winterhalter & Philipp Walter Sauter & Naomi Haefner & Oliver Gassmann, 2016. "Coordination mechanisms for international innovation in SMEs: effects on time-to-market and R&D task complexity as a moderator," Small Business Economics, Springer, vol. 46(2), pages 273-294, February.
    7. Liu, Ting & Li, Xizhuo, 2022. "How Do MNCs Conduct Local Technological Innovation in a Host Country? An Examination From Subsidiaries' Perspective," Journal of International Management, Elsevier, vol. 28(3).
    8. Inge Ivarsson & Claes Göran Alvstam, 2017. "New technology development by Swedish MNEs in emerging markets: the role of co-location of R&D and production," Asian Business & Management, Palgrave Macmillan, vol. 16(1), pages 92-116, April.
    9. René Belderbos & Marcelina Grabowska & Stijn Kelchtermans & Bart Leten & Jojo Jacob & Massimo Riccaboni, 2021. "Whither geographic proximity? Bypassing local R&D units in foreign university collaboration," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(7), pages 1302-1330, September.
    10. Lia Tirabeni & Klas Eric Soderquist, 2019. "Connecting the Dots: Framing Employee-Driven Innovation in Open Innovation Contexts," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 16(04), pages 1-27, June.
    11. Suma Athreye & Georgios Batsakis & Satwinder Singh, 2013. "Subsidiary Embeddedness is a Strategic Choice: Complementarity and the factors associated with different types of embeddedness," DRUID Working Papers 13-05, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marina Papanastassiou & Robert Pearce & Antonello Zanfei, 2020. "Changing perspectives on the internationalization of R&D and innovation by multinational enterprises: A review of the literature," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 623-664, June.
    2. Achcaoucaou, Fariza & Miravitlles, Paloma & León-Darder, Fidel, 2014. "Knowledge sharing and subsidiary R&D mandate development: A matter of dual embeddedness," International Business Review, Elsevier, vol. 23(1), pages 76-90.
    3. Liu, Ting & Li, Xizhuo, 2022. "How Do MNCs Conduct Local Technological Innovation in a Host Country? An Examination From Subsidiaries' Perspective," Journal of International Management, Elsevier, vol. 28(3).
    4. Anja Schmiele, 2012. "Drivers for international innovation activities in developed and emerging countries," The Journal of Technology Transfer, Springer, vol. 37(1), pages 98-123, February.
    5. Tiwari, Rajnish & Herstatt, Cornelius, 2011. "Role of "Lead Market" factors in globalization of innovation: Emerging evidence from India & its implications," Working Papers 64, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    6. Blomkvist, Katarina & Kappen, Philip & Zander, Ivo, 2017. "Gone are the creatures of yesteryear? On the diffusion of technological capabilities in the ‘modern’ MNC," Journal of World Business, Elsevier, vol. 52(1), pages 1-16.
    7. Schmiele, Anja, 2009. "Drivers for international innovation activities in developed and emerging countries," ZEW Discussion Papers 09-064, ZEW - Leibniz Centre for European Economic Research.
    8. Maximilian Palmié & Marco Zeschky & Stephan Winterhalter & Philipp Walter Sauter & Naomi Haefner & Oliver Gassmann, 2016. "Coordination mechanisms for international innovation in SMEs: effects on time-to-market and R&D task complexity as a moderator," Small Business Economics, Springer, vol. 46(2), pages 273-294, February.
    9. Zeng, Rong & Grøgaard, Birgitte & Steel, Piers, 2018. "Complements or substitutes? A meta-analysis of the role of integration mechanisms for knowledge transfer in the MNE network," Journal of World Business, Elsevier, vol. 53(4), pages 415-432.
    10. Suma Athreye & Georgios Batsakis & Satwinder Singh, 2013. "Subsidiary Embeddedness is a Strategic Choice: Complementarity and the factors associated with different types of embeddedness," DRUID Working Papers 13-05, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    11. Ambos, Bjorn, 2005. "Foreign direct investment in industrial research and development: A study of German MNCs," Research Policy, Elsevier, vol. 34(4), pages 395-410, May.
    12. Patricia Laurens & Christian Le Bas & Antoine Schoen, 2019. "Worldwide IP coverage of patented inventions in large pharma firms: to what extent do the internationalisation of R&D and firm strategy matter?," Post-Print hal-01725229, HAL.
    13. René Belderbos & Bart Leten & Shinya Suzuki, 2017. "Scientific research, firm heterogeneity, and foreign R&D locations of multinational firms," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 26(3), pages 691-711, September.
    14. Håkanson, Lars & Kappen, Philip, 2016. "Live and let die: A survival analysis of foreign R&D units in Swedish MNEs," International Business Review, Elsevier, vol. 25(6), pages 1185-1196.
    15. Tiwari, Rajnish & Herstatt, Cornelius, 2011. "Lead market factors for global innovation: Emerging evidence from India," Working Papers 61, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    16. Eric Rugraff, 2017. "A Patent Analysis Of Foreign Direct Innovative R&D Activities In Central Europe: The Czech Case," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(02), pages 1-28, February.
    17. Di Minin, Alberto & Zhang, Jieyin & Gammeltoft, Peter, 2012. "Chinese foreign direct investment in R&D in Europe: A new model of R&D internationalization?," European Management Journal, Elsevier, vol. 30(3), pages 189-203.
    18. Björn Ambos & Bodo B. Schlegelmilch, 2008. "Innovation in multinational firms: Does cultural fit enhance performance?," Management International Review, Springer, vol. 48(2), pages 189-206, April.
    19. Srivardhini K. Jha & Charles Dhanaraj & Rishikesha T. Krishnan, 2018. "From Arbitrage to Global Innovation: Evolution of Multinational R&D in Emerging Markets," Management International Review, Springer, vol. 58(4), pages 633-661, August.
    20. Eric Rugraff, 2014. "Foreign direct R&D investment in Central Europe: where do we stand?," Working Papers of BETA 2014-22, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:intman:v:17:y:2011:i:2:p:114-129. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/601266/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.