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Global R&D organization and the development of dynamic capabilities : Literature review and case study of a Chinese high‐tech firm

Author

Listed:
  • Ralf Martin Ester

    (EESC-GEM Grenoble Ecole de Management)

  • Dimitris Assimakopoulos

    (EESC-GEM Grenoble Ecole de Management)

  • Maximilian von Zedtwitz

    (Tongji University)

  • Xiubao Yu

    (Tongji University)

Abstract

Purpose– How does the internationalization of R&D influence the development of dynamic capabilities? Based on the observation that Chinese high‐tech companies internationalize parts of their R&D activities to Western countries before they have established sound domestic R&D capabilities and in opposition to other held beliefs about internationalization drivers this paper aims to investigate the role of global R&D organizational structure in the development of dynamic capabilities. Design/methodology/approach– This research is based on a qualitative case study using data of one Chinese high‐tech firm to develop testable propositions. Findings– The research develops three main propositions: the loss of competitive advantage and relevant capabilities in the domestic market is more important to the internationalization of R&D than an attempt to enter new international markets; in joint development teams with a partner company, a functional R&D team sub‐structure using heavyweight or autonomous teams leads to a higher degree of knowledge exchange in the partner sub‐project organization; R&D projects conducted in organizations with higher formal control lead to a higher degree of learning than R&D projects conducted when control is shared with a partner; R&D projects which rely extensively on external knowledge (with no formal control) produce better outcomes for learning than projects conducted under joint control; R&D projects which rely extensively on external knowledge (with no formal control) produce better outcomes for learning than projects conducted in full control. Research limitations/implications– As the research is based on data of one single case study there are several inherent limitations regarding validity and reliability which need to be covered by future research. Originality/value– This paper posits that R&D internationalization has a positive influence on the development of dynamic capabilities.

Suggested Citation

  • Ralf Martin Ester & Dimitris Assimakopoulos & Maximilian von Zedtwitz & Xiubao Yu, 2010. "Global R&D organization and the development of dynamic capabilities : Literature review and case study of a Chinese high‐tech firm," Grenoble Ecole de Management (Post-Print) hal-02313389, HAL.
    • Handle: RePEc:hal:gemptp:hal-02313389
    DOI: 10.1108/17561411011031972
    as

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