Determinants of transnational new product development capability: testing the influence of transferring and deploying tacit overseas knowledge

Subramaniam, Mohan; Venkatraman, N.

doi:10.1002/smj.163

Cited by 442 publications

(253 citation statements)

References 50 publications

(52 reference statements)

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“…Suzuki also deploys Japanese engineers at Maruti. This measure ensures close interaction and transfer of tacit knowledge to implement common standards in the process of product development (Subramaniam and Venkatraman, 2001 It is currently expanding its manufacturing capacity by 500,000 units which is expected to be functional by fiscal year -13 ( Maruti Suzuki, 2011. Maruti attributes the popularity of its models with Indian customers, partially, to "the right mix of fuel efficiency, engine performance, driveability, body styling, safety, security, comfort, entertainment features and cost", as S. Nakanishi, Maruti's managing director & CEO describes it (Maruti Suzuki, 2011: 16).…”

Section: Suzuki Motor and Subsidiaries Production Of Automobiles (Exclumentioning

confidence: 99%

India - A Lead Market for Frugal Innovations? Extending the Lead Market Theory to Emerging Economies

Tiwari

Herstatt

2012

SSRN Journal

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India has emerged as a vibrant and versatile source for cost effective, "disruptive innovations" of various varieties. Price-sensitive consumers in a large and growing market keep inducing firms to apply "frugal engineering" for creating affordable products and services without compromising excessively on quality. Because, as The Economist asserts: "Frugal does not mean second-rate". Such innovations are characterized by high affordability, robustness, and "good enough" quality in a volume-driven market. Resource constraints motivate firms and entrepreneurs to think out-of-thebox. The trick lies in creating solutions that are able to circumvent given environmental constraints in a cost effective way. India's large and enormously young population faced with limited budgets, but well-endowed with high aspirations, provides an ideal experiment ground for many firms. Solutions created for the Indian market are often suitable for other developing countries in Asia, Africa and Latin America that frequently face similar socio-economic conditions. In some instances they succeed even in developed country markets by enabling significant cost reductions. This emergence as a hub for "frugal innovations" possibly suggests a "lead market" role for India.On the other hand, lead markets, as understood today, are characterized by high per capita income, great customer sophistication and high quality infrastructure. Such assumptions imply that lead markets, almost by default, can only exist in economically developed countries because only they can finance the development effort. Using two anchor-cases of product innovations aimed at pricesensitive segments in India we generate preliminary evidence to challenge some of the core assumptions of the "lead market" theory and propose that lead markets can emerge in developing countries too because market attractiveness (e.g. volume of demand, export possibilities) and technological capabilities are able to offset many other deficiencies. The supposed absence of customer sophistication is channelized into a challenge for supplier-side sophistication to design cost effective, "good enough" solutions ("low-cost, thin-margin") that can meet the aspirations of consumers in a highly competitive market. In order to master this challenge companies need access to a competent and sufficiently large technical base with first-hand knowledge of the ground situation of targeted customer groups ("social capital").

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Section: Suzuki Motor and Subsidiaries Production Of Automobiles (Exclumentioning

confidence: 99%

India - A Lead Market for Frugal Innovations? Extending the Lead Market Theory to Emerging Economies

Tiwari

Herstatt

2012

SSRN Journal

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“…Several contributions in the management literature pinpoint to the role of subsidiary development in the expansion of innovation activities abroad (see for example, Birkinshaw et al 1998;Subramaniam and Venkatraman 2001;Rugman and Verbeke 2001;Furu 2001). The argument of these works is that subsidiaries-specific characteristics, such as size, age or managers' leadership behavior, influence the type of innovation activities affiliates can and do perform.…”

Section: Firm's Experience In Host Countriesmentioning

confidence: 99%

Technological diversity, scientific excellence and the location of inventive activities abroad: the case of nanotechnology

Fernández-Ribas

Shapira

2008

J Technol Transf

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The working papers are produced by The University of Manchester -Manchester Business School and are to be circulated for discussion purposes only. Their contents should be considered to be preliminary. The papers are expected to be published in due course, in a revised form and should not be quoted without the authors' permission. AbstractOur contribution to the expanding literature on the globalization of research and innovation is to investigate the extent to which sector-specific developments in an emerging technology (such as increasing interdisciplinarity and complexity) affect inventive activities developed abroad. We look at how technological diversity and scientific excellence of host countries in the field of nanotechnology affect the development of inventive activities by US multinational companies (MNCs). We identify the most active US-based MNCs in nanotechnology-related patenting and examine location decisions of these companies and their international subsidiaries. Econometric results confirm our hypothesis that technological breadth of host countries positively influence the expected number of inventions developed abroad by US MNCs. S&T capabilities of countries also have a positive impact on the decision to invent abroad, while the influence of market specific factors is less clear. We interpret these results as suggesting that host country S&T capabilities are important to attract innovative activities by MNCs, but as the interdisciplinary and convergent nature of nanotechnology evolves, access to a broadly diversified knowledge base becomes important, increasing the relative attractiveness of host locations. KeywordsMultinationals, Innovation, Location, Patents, Nanotechnology JEL Classification F23, 032, L22How to quote or cite this document Fernández-Ribas, Andrea and Shapira, Philip (2008 March 2008Abstract. Our contribution to the expanding literature on the globalization of research and innovation is to investigate the extent to which sector-specific developments in an emerging technology (such as increasing interdisciplinarity and complexity) affect inventive activities developed abroad. We look at how technological diversity and scientific excellence of host countries in the field of nanotechnology affect the development of inventive activities by US multinational companies (MNCs). We identify the most active US-based MNCs in nanotechnology-related patenting and examine location decisions of these companies and their international subsidiaries. Econometric results confirm our hypothesis that technological breadth of host countries positively influence the expected number of inventions developed abroad by US MNCs. S&T capabilities of countries also have a positive impact on the decision to invent abroad, while the influence of market specific factors is less clear. We interpret these results as suggesting that host country S&T capabilities are important to attract innovative activities by MNCs, but as the interdisciplinary and convergent nature of nanotechnology evolves, access to a bro...

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“…Cada tipo de conhecimento requer sistemas apropriados de gestão que garantam a codificação, transferência e assimilação (AL-GHASSANI et al, 2006;SUBRAMANIAM;VENKATRAMAN, 2001).…”

Section: Barreiras à Transferência De Conhecimentounclassified

“…Sob a ótica da inovação, a criação de subsidiárias em diversos mercados tem resultado no desenvolvimento e produção de novos produtos e processos ou na adequação local de produtos desenvolvidos pela matriz; em ambos os casos, a gestão do conhecimento assume um importante papel na interação entre a matriz e a subsidiária (SUBRAMANIAM; VENKATRAMAN, 2001). …”

Section: Introductionunclassified

Transferência de conhecimento em empresas multinacionais: estudo de caso na indústria de papel

Cunha¹,

Ferreira²

2011

Perspect. ciênc. inf.

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A pesquisa, aqui relatada, teve por objetivo avaliar o processo de transferência de conhecimento, envolvendo a subsidiária brasileira, a matriz americana e a subsidiária francesa de uma organização multinacional do setor de papel, buscando identificar os elementos de sucesso e o modelo de transferência adotado. Como base para a pesquisa, foram utilizados principalmente os modelos de transferência de conhecimento desenvolvidos por Duguid e Brown (2001), Nonaka e Konno (1998), Dixon (2000) e Fleury; Oliveira Junior; Child (2001). A pesquisa teve caráter qualitativo e foi realizado um estudo de caso único, valendo-se de entrevistas semiestruturadas, análise de documentos e observação para a coleta de informações. A pesquisa apontou, como fatores de sucesso da transferência, a adequada seleção dos coordenadores e dos participantes das equipes envolvidas, o apoio da organização, o estabelecimento de um programa de viagens, visitas, reuniões e atividades de socialização, que motivaram os participantes e apoiaram o desenvolvimento de relações de confiança entre as equipes, facilitando o compartilhamento de conhecimento. Como principais barreiras à transferência, foram apontadas a resistência à mudança por parte de alguns membros da equipe da unidade brasileira, associada à frustração com o fluxo unidirecional de conhecimento e a não valorização do conhecimento local.

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Determinants of transnational new product development capability: testing the influence of transferring and deploying tacit overseas knowledge

Cited by 442 publications

References 50 publications

India - A Lead Market for Frugal Innovations? Extending the Lead Market Theory to Emerging Economies

India - A Lead Market for Frugal Innovations? Extending the Lead Market Theory to Emerging Economies

Technological diversity, scientific excellence and the location of inventive activities abroad: the case of nanotechnology

Transferência de conhecimento em empresas multinacionais: estudo de caso na indústria de papel

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