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Subsidiary development of new technologies: managing technological changes in multinational and geographic space

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  • Anupama Phene
  • Stephen Tallman

Abstract

This study explores the co-evolutionary processes of the subsidiaries of the multinational firm with their global organizations and geographic locations. How subsidiaries expand their technological scope is determined by the nature of changes in dual contexts, within their organizations and within their geographies. Using the concepts of local search and communities of practice, we propose that changes in these contexts have differential effects on new technology development. Increased technology creation in the organizational context, in areas specific to the subsidiary’s expertise, leads to the development of focused, competence-exploiting technologies, while increased host country innovation in the broad technological spectrum is conducive to expansive, competence-creating technologies in the subsidiary. Subsidiary embeddedness in these dual contexts enhances the effects of the organizational and locational contexts on the scope of subsidiary new technology development.

Suggested Citation

  • Anupama Phene & Stephen Tallman, 2018. "Subsidiary development of new technologies: managing technological changes in multinational and geographic space," Journal of Economic Geography, Oxford University Press, vol. 18(5), pages 1121-1148.
  • Handle: RePEc:oup:jecgeo:v:18:y:2018:i:5:p:1121-1148.
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    File URL: http://hdl.handle.net/10.1093/jeg/lby048
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    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. Harald Bathelt & John A Cantwell & Ram Mudambi, 2018. "Overcoming frictions in transnational knowledge flows: challenges of connecting, sense-making and integrating," Journal of Economic Geography, Oxford University Press, vol. 18(5), pages 1001-1022.
    3. Gölgeci, Ismail & Ferraris, Alberto & Arslan, Ahmad & Tarba, Shlomo Y., 2019. "European MNE subsidiaries' embeddedness and innovation performance: Moderating role of external search depth and breadth," Journal of Business Research, Elsevier, vol. 102(C), pages 97-108.

    More about this item

    Keywords

    Subsidiary; new technology development; multinational firm; geography;

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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