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Rationality vs Ignorance: The Role of MNE Headquarters in Subsidiaries’ Innovation Processes

In: Knowledge, Networks and Power

Author

Listed:
  • Francesco Ciabuschi
  • Mats Forsgren
  • Oscar Martín Martín

Abstract

It has been recognized that innovation processes in multinational enterprises (MNEs) are largely context-specific, local activities carried out at the subsidiary level (e.g., Andersson, Forsgren, & Holm, 2007; Asakawa, 2001; Birkinshaw & Hood, 1998; Doz & Prahalad, 1981; Ghoshal & Bartlett, 1988; Hedlund, 1986; Rugman & Verbeke, 2001). As a consequence, the ability of corporate headquarters (HQ) to influence these widely dispersed processes has become a major issue in contemporary research on MNEs. What is the role of HQ in these processes? To what extent can it participate in and play an active role in specific innovation processes? What are the performance implications when it gets involved? These questions, which have not yet established answers, warrant further research. In addition, studies aimed at finding the answers have not yet debated the validity of alternative perspectives related to the knowledge asymmetry between the potential participants in innovation processes.

Suggested Citation

  • Francesco Ciabuschi & Mats Forsgren & Oscar Martín Martín, 2015. "Rationality vs Ignorance: The Role of MNE Headquarters in Subsidiaries’ Innovation Processes," Palgrave Macmillan Books, in: Mats Forsgren & Ulf Holm & Jan Johanson (ed.), Knowledge, Networks and Power, chapter 11, pages 264-283, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-50882-9_11
    DOI: 10.1057/9781137508829_11
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    Cited by:

    1. Fernandez, Anne-Sophie & Chiambaretto, Paul & Chauvet, Mathieu & Engsig, Juliane, 2021. "Why do MNEs both make and coopete for innovation?," Technovation, Elsevier, vol. 106(C).

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