Globalization of R&amp;D: recent changes in the management of innovation in transnational corporations

Gerybadze, Alexander; Reger, Guido

doi:10.1016/s0048-7333(98)00111-5

Cited by 394 publications

(210 citation statements)

References 24 publications

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“…These works have of course drawn on the preceding and contemporary scholarly discourse in various streams of economics and business management (e.g. Gerybadze and Reger, 1999, Kumar et al, 1998, Linder, 1961, Porter, 1990a, Vernon, 1966, which has shaped their inherent logic.…”

Section: Theory Of Lead Marketsmentioning

confidence: 99%

“…One year later, Beise and Belitz (1998: 2) suggested that "in most cases it is not the technological superiority of the host country itself which is the decisive locational advantage to attract multinationals' R&D but the lead-market function of that country or region". Studies by Gerybadze and Reger (1999) and Meyer-Krahmer and Reger (1999) established that lead markets were in many instances the primary criterion for selection of overseas R&D locations because they helped reduce duplication and inefficiency of R&D efforts. Similarly, a study conducted on behalf of the European Commission (1998) confirmed that multinationals were increasingly concentrating their R&D capacities in selected lead markets in order to establish presence on-the-spot, to ensure better learning, and to adapt to the needs and wishes of sophisticated customers.…”

Section: Lead Markets As Drivers Of Global Innovationmentioning

confidence: 99%

“…Scholars have generally tended to associate lead markets with classic characteristics of market power and/or technological prowess , Beise, 2004, Gerybadze and Reger, 1999. Even though Lall (1980) had pointed towards the possibility of technology exports from developing economies, so far most lead market scholars, by emphasizing attributes like high per capita income and customer sophistication, have at least implicitly discounted the possibility of a lead market emerging in a developing nation.…”

Section: Dominant Logic and Research Gapmentioning

confidence: 99%

“…Second, it is used by researchers for the purpose of ex post identification of lead markets in selected industries. We see a clear need for repositioning this model more in the realm of product level innovation diffusion ) and international R&D management (Gerybadze and Reger, 1999, Meyer-Krahmer and Reger, 1999, Sachwald, 2008.…”

Section: Implications For the Lead Market Theorymentioning

confidence: 99%

“…They are thought to play a key role in shaping global demand for a new product or technology (Beise, 2004, Beise andCleff, 2004) in that they provide a guiding instrument for product development by giving it market orientation during product conceptualization and design. Regarded as early indicators for emerging global demand and enablers of learning effects they act as a key driver for the increasing internationalization of R&D as foreign firms seek to gain access to such a market (Gerybadze and Reger, 1999, Sachwald, 2008.…”

Section: Introductionmentioning

confidence: 99%

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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: Theory Of Lead Marketsmentioning

confidence: 99%

Section: Lead Markets As Drivers Of Global Innovationmentioning

confidence: 99%

Section: Dominant Logic and Research Gapmentioning

confidence: 99%

Section: Implications For the Lead Market Theorymentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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

Tiwari

Herstatt

2012

SSRN Journal

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The knowledge based view and global strategy: Past impact and future potential

Grant

Phene

2021

Global Strategy Journal

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The centrality of knowledge to the global arena has allowed scholars in this area to play a leading role in developing the knowledge-based view (KBV) of the firm. We propose that broadening the KBV to take account of the social constructionist approach to knowledge and the multilevel nature of knowledge processes, can build a more serviceable knowledge-based theory of global strategy. Specifically, we urge research in three directions, the exploration of a KBV of economic organization in a global context, which would encompass macro institutions as well as individuals; focus on the foundational construct of knowledge that would integrate human and machine learning in the global arena; and the creation of a comprehensive framework of knowledge types and knowledge processes across space. Managerial Summary: Lack of consensus over the nature of knowledge has prevented the KBV from developing into an integrated, stand-alone theory of the MNE, but has not constrained its ability to provide penetrating insights into global strategy and the management of the MNE. Empirical research shows that the processes through which knowledge is generated and applied in the global arena are complex and contextually differentiated. To extend and synthesize our understanding of these complex processes, we propose the development of a knowledge based theory of global strategy. We advocate extending the KBV in three areas, first, consideration of a KBV of organization in a

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What determines the profitability of foreign direct investment? A subsidiary‐level analysis of Japanese multinationals

Sakakibara¹,

Yamawaki

2008

Manage Decis Econ

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This article identifies key factors that determine the profitability of Japanese firms abroad by using panel-data regression models on new, large-scale, subsidiary-level data over the 1990-1996 period. The results show that the determinants of subsidiary profits differ across host regions, suggesting that the economic and institutional factors specific to host regions influence significantly the profit performances of overseas subsidiaries. While the size effect on the subsidiary profitability is present in all the regions, other effects, such as experience, local supplier networks, local sales and macroeconomic conditions affect the performance of subsidiaries in a different manner by region. Copyright © 2008 John Wiley & Sons, Ltd.

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Globalization of R&D: recent changes in the management of innovation in transnational corporations

Cited by 394 publications

References 24 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

The knowledge based view and global strategy: Past impact and future potential

What determines the profitability of foreign direct investment? A subsidiary‐level analysis of Japanese multinationals

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