Building Innovation Subsidiaries in Emerging Markets: The Experience of Novo Nordisk

Pogrebnyakov, Nicolai; Kristensen, Jonas D.

doi:10.5437/08956308x5404006

Cited by 13 publications

(7 citation statements)

References 19 publications

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“…A lead factory should continually transfer knowledge and information about product modifications and changes in the production systems to the subsidiaries for which it is responsible (Rudberg and West 2008). Local adjustments may be needed that could cause a major challenge when trying to find a balance between maintaining central control and giving the subsidiaries a degree of autonomy that allows them to develop into independent subsidiaries (Pogrebnyakov and Kristensen 2011). This is in line with Shi (2003), who highlights that the real challenge is how to balance global integration and local responsiveness.…”

Section: The Lead Factory Concept and Its Challengesmentioning

confidence: 99%

Lead factory operationalisation and challenges

Granlund

Rösiö

Bruch

et al. 2019

Production Planning & Control

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This paper deepens the understanding of the lead factory concept by examining how the lead factory role is operationalised and what challenges are associated with it. The research is based on an explorative case study of eight Swedish lead factories in the manufacturing industry. The empirical findings suggest that the understanding of the lead factory concept should be extended as it is not restricted to one type of set-up. The findings show a spectrum ranging from an entire manufacturing plant, parts of a plant, to a virtual plant considered to be the lead factory. The research also shows a broad range of challenges experienced by lead factories. Several of these are related to and originate from unclear role, responsibility and mandate of the lead factory. The lack of dedicated resources for lead factory activities, specifically long-term development and difficulties in measuring the benefits of the role, were other challenges faced.

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Section: The Lead Factory Concept and Its Challengesmentioning

confidence: 99%

Lead factory operationalisation and challenges

Granlund

Rösiö

Bruch

et al. 2019

Production Planning & Control

View full text Add to dashboard Cite

show abstract

“…However, a study conducted on 99 subsidiaries in Canada showed that decentralization had little bearing on the centre of excellence (Frost et al, 2002). A case study of Novo Nordisk, a Danish MNE located in China, recommends having an established corporate-level unit to coordinate all the subsidiary R&D activities to define the overall strategy and divert the necessary resources appropriately (Pogrebnyakov & Kristensen, 2011).…”

Section: The Comprehensive Subsidiary Innovation Model (Csim)mentioning

confidence: 99%

Subsidiary Innovation in a Developing Economy: Towards a Comprehensive Model and Directions for Future Research

Betaraya

Nasim

Mukhopadhyay

2018

FIIB Business Review

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With the internationalization of innovation, multinational enterprise (MNE) subsidiaries have been found to play a critical role in product and process innovation. Deriving from a rich and diverse subsidiary innovation (SI) literature, this article attempts to develop a comprehensive model to study the factors that impact SI in a developing economy by devising three macro constructs, namely, (a) local environment (LE), (b) subsidiary traits (ST) and (c) headquarters (HQ) strategy (HS). The 15 factors associated with these macro constructs identified through literature review are statistically validated through an ‘Idea Engineering’ exercise for their contextual relevance. Based on an expert survey carried out in the developing economy context of India, barring 2 HS factors, rest of them have been found to be statistically significant in the Indian context. Antecedents of SI, identified by this article, can be used by domain practitioners and experts in the field to improve their organization’s innovative capability. The proposed model in this study can be further empirically validated by researchers working in the area of SI.

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“…Individual firms can benefit from participating in supply networks in several ways. First, by providing access to external sources of competence, networks improve the ability of firms to innovate (Gronum, Verreynne, and Kastelle 2012;Kaufman, Wood, and Theyel 2000;Narula 2004;Pogrebnyakov and Kristensen 2011). Second, firms benefit from network membership through knowledge and technology exchange (Mowery, Oxley, and Silverman 1996); (Dyer and Nobeoka 2000).…”

Section: Firm Benefits From Supply Network Participationmentioning

confidence: 99%