Strategic management scholars have long emphasized the importance of innovation for a firm's competitive advantage and performance. However, the current state of knowledge about the strategic management of innovation is characterized by conflicting theoretical predictions, persisting knowledge gaps and theoretical inconsistencies. Adopting a ‘systematic’ approach to reviewing the literature, this paper combines different quantitative methods – co‐word analysis, cluster analysis and frequency analysis – to review 342 articles on the strategic management of innovation published in seven journals from 1992 to 2010. On the basis of these analyses, suggestions are developed for future research which could help to promote future theory development and provide relevant material for policy decisions that managers and executives have to make when they manage innovation.

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0Our study articulates and empirically tests a theory of how the parent firm of a multinational corporation (MNc) can achieve global integration of subsidiaries into the MNc's intrafirm network by using managerial "tools" to manipulate the MNC's formal organizational architecture. 0Taking a subsidiary's performance as an observable criterion to measure the success of its integration into the global intra-firm network, the model is tested on a unique dataset of 287 international R&D subsidiaries. 0 Our findings suggest that the parent firm can actively improve a subsidiary's performance and hence its integration by encouraging knowledge asset transfer, by granting the subsidiary a mandate for undertaking activities on behalf of the corporation as a whole, and by providing it with more operational autonomy. 0These findings open up a deep perspective of how subsidiary integration can be achieved by appropriate managerial "tools" in the context of international innovation. We discuss the implications of these results for the literature and for managers.

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