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Subsidiary embeddedness as a determinant of divisional headquarters involvement in innovation transfer processes

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  • Dellestrand, Henrik

Abstract

This paper conceptualizes divisional headquarters as an important hub-firm within the MNE, orchestrating innovation transfer processes between subsidiaries. It is argued that the internal and external embeddedness of a subsidiary hosting an innovation development project subsequently influences divisional headquarters involvement in the transfer of that innovation. In this way, embeddedness, i.e., the relationships that firms have with each other in the innovation development phase, is brought to the fore as an important factor for MNE subsidiaries hosting innovation development projects for explaining the involvement of divisional headquarters in a subsequent transfer. This highlights divisional headquarters as an active orchestrator of innovation transfers within the MNE. Data from 169 innovation transfer projects as well as 146 internal and 121 external embedded relationships at subsidiary level support the argument of embeddedness as a driver of divisional headquarters involvement in subsidiary innovation transfer projects. From a business network perspective, the findings highlight the role of internal and external embeddedness during innovation development in the subsequent involvement of divisional headquarters in the transfer phase. Embeddedness is not only important for subsidiaries in the innovation development phase but also for divisional headquarters involvement in, and orchestration of, innovation transfer.

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  • Dellestrand, Henrik, 2011. "Subsidiary embeddedness as a determinant of divisional headquarters involvement in innovation transfer processes," Journal of International Management, Elsevier, vol. 17(3), pages 229-242, September.
  • Handle: RePEc:eee:intman:v:17:y:2011:i:3:p:229-242
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    Cited by:

    1. Conroy, Kieran M. & Collings, David G., 2016. "The legitimacy of subsidiary issue selling: Balancing positive & negative attention from corporate headquarters," Journal of World Business, Elsevier, vol. 51(4), pages 612-627.
    2. repec:spr:manint:v:57:y:2017:i:6:d:10.1007_s11575-017-0325-z is not listed on IDEAS
    3. Viktor Prokop & Jan Stejskal, 2015. "Determinants of machinery firms' innovation activity - case study from the Czech Republic," ERSA conference papers ersa15p1111, European Regional Science Association.
    4. repec:ksa:szemle:1713 is not listed on IDEAS
    5. 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.
    6. Ciabuschi, Francesco & Dellestrand, Henrik & Kappen, Philip, 2012. "The good, the bad, and the ugly: Technology transfer competence, rent-seeking, and bargaining power," Journal of World Business, Elsevier, vol. 47(4), pages 664-674.
    7. Rong, Ke & Wu, Jinxi & Shi, Yongjiang & Guo, Liang, 2015. "Nurturing business ecosystems for growth in a foreign market: Incubating, identifying and integrating stakeholders," Journal of International Management, Elsevier, vol. 21(4), pages 293-308.
    8. Mudambi, Ram & Swift, Tim, 2011. "Leveraging knowledge and competencies across space: The next frontier in international business," Journal of International Management, Elsevier, vol. 17(3), pages 186-189, September.

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