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