The evolution of innovation capability in multinational enterprise subsidiaries: Dual network embeddedness and the divergence of subsidiary specialisation in Taiwan
This paper examines how innovation-related capabilities for production, design and marketing develop at the subsidiary level within multinational enterprises (MNEs). We focus on how subsidiary autonomy and changing opportunities to access external (host country) sources of capability contribute to the accumulation of specialist capabilities in five Taiwan-based MNE subsidiaries in the semiconductor industry. Longitudinal analysis shows how the accumulation process is subject to discontinuities, as functional divisions are (re)opened and closed during the lifetime of the subsidiary. A composite set of innovation output measures also shows significant variations in within-function levels of capability across our sample. We conclude that subsidiary specialisation and unique subsidiary-specific advantages have evolved in a way that is strongly influenced by the above factors.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ram Mudambi, 2008. "Location, control and innovation in knowledge-intensive industries," Journal of Economic Geography, Oxford University Press, vol. 8(5), pages 699-725, September.
- Alfred Kleinknecht & Kees Van Montfort & Erik Brouwer, 2002. "The Non-Trivial Choice between Innovation Indicators," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(2), pages 109-121.
- Simon Collinson & Alan M Rugman, 2008. "The regional nature of Japanese multinational business," Journal of International Business Studies, Palgrave Macmillan, vol. 39(2), pages 215-230, March.
- Phene, Anupama & Almeida, Paul, 2003. "How do firms evolve? The patterns of technological evolution of semiconductor subsidiaries," International Business Review, Elsevier, vol. 12(3), pages 349-367, June.
- Boehe, Dirk Michael, 2007. "Product development in MNC subsidiaries: Local linkages and global interdependencies," Journal of International Management, Elsevier, vol. 13(4), pages 488-512, December.
- Dantas, Eva & Bell, Martin, 2009. "Latecomer firms and the emergence and development of knowledge networks: The case of Petrobras in Brazil," Research Policy, Elsevier, vol. 38(5), pages 829-844, June.
- 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.
- Cantwell, John & Vertova, Giovanna, 2004. "Historical evolution of technological diversification," Research Policy, Elsevier, vol. 33(3), pages 511-529, April.
- Tina C Ambos & Ulf Andersson & Julian Birkinshaw, 2010. "What are the consequences of initiative-taking in multinational subsidiaries?," Journal of International Business Studies, Palgrave Macmillan, vol. 41(7), pages 1099-1118, September.
- Thomas W Malnight, 1996. "The Transition from Decentralized to Network-Based MNC Structures: An Evolutionary Perspective," Journal of International Business Studies, Palgrave Macmillan, vol. 27(1), pages 43-65, March.
- Zander, Ivo, 1998. "The evolution of technological capabilities in the multinational corporation--dispersion, duplication and potential advantages from multinationality," Research Policy, Elsevier, vol. 27(1), pages 17-35, May.
- Archibugi, Daniele & Coco, Alberto, 2005. "Measuring technological capabilities at the country level: A survey and a menu for choice," Research Policy, Elsevier, vol. 34(2), pages 175-194, March.
- Christian Geisler Asmussen & Torben Pedersen & Charles Dhanaraj, 2009. "Host-country environment and subsidiary competence: Extending the diamond network model," Journal of International Business Studies, Palgrave Macmillan, vol. 40(1), pages 42-57, January.
- Patel, Pari & Vega, Modesto, 1999. "Patterns of internationalisation of corporate technology: location vs. home country advantages1," Research Policy, Elsevier, vol. 28(2-3), pages 145-155, March.
- Kurokawa, Sam & Iwata, Satoshi & Roberts, Edward B., 2007. "Global R&D activities of Japanese MNCs in the US: A triangulation approach," Research Policy, Elsevier, vol. 36(1), pages 3-36, February.
- Hobday, Michael & Rush, Howard, 2007. "Upgrading the technological capabilities of foreign transnational subsidiaries in developing countries: The case of electronics in Thailand," Research Policy, Elsevier, vol. 36(9), pages 1335-1356, November.
- Anupama Phene & Paul Almeida, 2008. "Innovation in multinational subsidiaries: The role of knowledge assimilation and subsidiary capabilities," Journal of International Business Studies, Palgrave Macmillan, vol. 39(5), pages 901-919, July.
- Morlacchi, Piera & Nelson, Richard R., 2011. "How medical practice evolves: Learning to treat failing hearts with an implantable device," Research Policy, Elsevier, vol. 40(4), pages 511-525, May.
- Emmanuel Duguet & Megan MacGarvie, 2005.
"How well do patent citations measure flows of technology? Evidence from French innovation surveys,"
Economics of Innovation and New Technology,
Taylor & Francis Journals, vol. 14(5), pages 375-393.
- DUGUET Emmanuel & MacGARVIE Megan, 2004. "How Well Do Patent Citations Measure Flows of Technology? Evidence from French Innovation Surveys," Development and Comp Systems 0411018, EconWPA.
- Klaus E. Meyer & Ram Mudambi & Rajneesh Narula, 2011. "Multinational Enterprises and Local Contexts: The Opportunities and Challenges of Multiple Embeddedness," Journal of Management Studies, Wiley Blackwell, vol. 48(2), pages 235-252, 03.
- James H Taggart, 1997. "Autonomy and Procedural Justice: A Framework for Evaluating Subsidiary Strategy," Journal of International Business Studies, Palgrave Macmillan, vol. 28(1), pages 51-76, March.
- Dantas, Eva & Bell, Martin, 2011. "The Co-Evolution of Firm-Centered Knowledge Networks and Capabilities in Late Industrializing Countries: The Case of Petrobras in the Offshore Oil Innovation System in Brazil," World Development, Elsevier, vol. 39(9), pages 1570-1591, September.
- John Cantwell, 2009. "Location and the multinational enterprise," Journal of International Business Studies, Palgrave Macmillan, vol. 40(1), pages 35-41, January.
- Norlela Ariffin & Paulo Figueiredo, 2004. "Internationalization of innovative capabilities: counter-evidence from the electronics industry in Malaysia and Brazil," Oxford Development Studies, Taylor & Francis Journals, vol. 32(4), pages 559-583.
- Marin, Anabel & Bell, Martin, 2010. "The local/global integration of MNC subsidiaries and their technological behaviour: Argentina in the late 1990s," Research Policy, Elsevier, vol. 39(7), pages 919-931, September.
- Philip McCann & Ram Mudambi, 2005. "Analytical differences in the economics of geography: the case of the multinational firm," Environment and Planning A, Pion Ltd, London, vol. 37(10), pages 1857-1876, October.
- Paulo N. Figueiredo, 2011. "The Role of Dual Embeddedness in the Innovative Performance of MNE Subsidiaries: Evidence from Brazil," Journal of Management Studies, Wiley Blackwell, vol. 48(2), pages 417-440, 03.
- Sadowski, Bert M. & Sadowski-Rasters, Gaby, 2006. "On the innovativeness of foreign affiliates: Evidence from companies in The Netherlands," Research Policy, Elsevier, vol. 35(3), pages 447-462, April.
- Lall, Sanjaya, 1992. "Technological capabilities and industrialization," World Development, Elsevier, vol. 20(2), pages 165-186, February.
- Grupp, Hariolf & Mogee, Mary Ellen, 2004. "Indicators for national science and technology policy: how robust are composite indicators?," Research Policy, Elsevier, vol. 33(9), pages 1373-1384, November.
- Kogut, Bruce & Chang, Sea Jin, 1991. "Technological Capabilities and Japanese Foreign Direct Investment in the United States," The Review of Economics and Statistics, MIT Press, vol. 73(3), pages 401-13, August.
- Ram Mudambi & Pietro Navarra, 2004. "Is knowledge power? Knowledge flows, subsidiary power and rent-seeking within MNCs," Journal of International Business Studies, Palgrave Macmillan, vol. 35(5), pages 385-406, September.
- 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.
- von Hippel, Eric & Tyre, Marcie J., 1995. "How learning by doing is done: problem identification in novel process equipment," Research Policy, Elsevier, vol. 24(1), pages 1-12, January.
- Giovanni Dosi & Christopher Freeman & Richard Nelson & Gerarld Silverberg & Luc Soete (ed.), 1988. "Technical Change and Economic Theory," LEM Book Series, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy, number dosietal-1988, August.
When requesting a correction, please mention this item's handle: RePEc:eee:respol:v:41:y:2012:i:9:p:1501-1518. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.