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Organizational Leaning Through Reverse Transfer of R&D: Perspectives of the Japanese Overseas Subsidiary

Author

Listed:
  • David T. Methe

    (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan)

  • Hideki Yoshihara

    (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan)

Abstract

In this paper we conduct an exploratory investigation of how the management of R&D activities are viewed from the perspective of the subsidiary and examine how this and the relationship between the subsidiary and the parent effects the learning process of the multinational enterprise. We find support for the resource based view of the firm as a conceptual framework for studying these issues. We saw from the exploratory analyses performed that subsidiaries do establish a strategic intent or approach to the development of R&D capabilities. We found that the strategic approach taken by the subsidiary towards the development of local R&D activities influenced the likelihood of reverse transfer of technological knowledge to the parent. This aspect of organizational learning is influenced by the manner in which this transfer is managed. The duration of R&D activities at the subsidiary and the type of R&D conducted also influenced this process of organizational learning.

Suggested Citation

  • David T. Methe & Hideki Yoshihara, 1999. "Organizational Leaning Through Reverse Transfer of R&D: Perspectives of the Japanese Overseas Subsidiary," Discussion Paper Series 101, Research Institute for Economics & Business Administration, Kobe University.
  • Handle: RePEc:kob:dpaper:101
    as

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    References listed on IDEAS

    as
    1. Lazear, Edward P & Rosen, Sherwin, 1981. "Rank-Order Tournaments as Optimum Labor Contracts," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 841-864, October.
    2. Sako, Mari & Helper, Susan, 1998. "Determinants of trust in supplier relations: Evidence from the automotive industry in Japan and the United States," Journal of Economic Behavior & Organization, Elsevier, vol. 34(3), pages 387-417, March.
    3. Masten, Scott E. & Meehan, James Jr. & Snyder, Edward A., 1989. "Vertical integration in the U.S. auto industry : A note on the influence of transaction specific assets," Journal of Economic Behavior & Organization, Elsevier, vol. 12(2), pages 265-273, October.
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    More about this item

    Keywords

    Research and development; Subsidies; Japan;

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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