Headquarters involvement and efficiency of innovation development and transfer in multinationals: A matter of sheer ignorance?

Ciabuschi, Francesco; Forsgren, Mats; Martín, Óscar Martín

doi:10.1016/j.ibusrev.2011.02.003

Cited by 58 publications

(49 citation statements)

References 77 publications

(88 reference statements)

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“…Second, the parent company retains a central position in strategic decisions related to technological development (Ambos and Schlegelmilch, 2007;Ciabuschi et al, 2012). More pointedly, it may well be the case that the HQs see internal cooperation as a strategic tool to enhance MNE-wide knowledge absorption (or 'inward spillovers') from the local environment.…”

Section: Discussionmentioning

confidence: 99%

Foreign subsidiaries’ internal and external R&D cooperation in South Korea: Explanatory factors and interaction

Giroud

Yamin

2014

Asian Bus Manage

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This article analyses R&D cooperation strategies by foreign subsidiaries of MNEs located in South Korea. It differentiates between foreign subsidiaries with no R&D cooperation and those which favour internal or external R&D cooperation. Providing country-specific discussion in the context of South Korea, this enables comparison and contrast of the importance of innovation networks developed by MNE subsidiaries. Using various models, the results show that foreign subsidiaries in South Korea adopt complementary internal and external R&D cooperation strategies. Knowledge sourcing is found to be a key determinant of R&D cooperation, and government policies act as a strong incentive for inter-firm collaboration.

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Section: Discussionmentioning

confidence: 99%

Foreign subsidiaries’ internal and external R&D cooperation in South Korea: Explanatory factors and interaction

Giroud

Yamin

2014

Asian Bus Manage

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“…A network MNC is characterized by a low degree of formalization, extensive knowledge transfer and resource-rich and powerful subsidiaries (Foss et al 2012;Forsgren et al 2005). Research on the role of the CHQ within the network tradition has resulted in the development of concepts such as corporate parenting (Goold et al 1998;Goold and Campbell 2002), headquarters attention (Bouquet and Birkinshaw 2008;Rugman and Verbeke 2001;Ambos and Mahnke 2010), and headquarters involvement (Ciabuschi et al 2011(Ciabuschi et al , 2012bForsgren and Holm 2010;Raab et al 2014;Yamin et al 2011). Within this stream of research an active involvement of the headquarters is emphasized in terms of investments in time, effort and resources in unit-level activities (Bouquet and Birkinshaw 2008), and a value-adding nature of corporate parenting (Goold et al 1998;Egelhoff 2010).…”

Section: The Value Added Of Chq In Innovation Transfer Processes-a Nementioning

confidence: 99%

“…However, other network scholars propose that actors in general have limited knowledge, limited control over resources and cannot fully overview the behavior, intentions, and interactive processes of other actors (Forsgren et al 2005). Consequently, it is suggested that the CHQ's knowledge situation in the network MNC is reflected by an increasing complexity which may result in managerial liabilities such as outsidership (Johanson and Vahlne 2009;Vahlne et al 2012), a liability of uncertainty (Ciabuschi et al 2011(Ciabuschi et al , 2012bForsgren and Holm 2010), and a liability of reliability (Verbeke and Greidanus 2009).…”

Section: The Value Added Of Chq In Innovation Transfer Processes-a Nementioning

confidence: 99%

“…This would include responsibilities such as the facilitation of organizational learning and knowledge transfer, which implies the CHQ as an active participant in valuecreating processes at the subsidiary level (Forsgren and Holm 2010). Hence, a more recent stream of research emphasizes how an actual hands-on strategy by the CHQ is necessary (Goold and Campbell 2002;Goold et al 1998) and suggests a more active involvement of the CHQ in subsidiary level activities (Ciabuschi et al 2012b;Egelhoff 2010;Yamin et al 2011).…”

Section: Introductionmentioning

confidence: 99%

“…For the simplicity of the paper, the value added of these two managerial approaches is viewed in terms of its' impact on the performance of the innovation transfer processes. A distinction is made between transfer efficiency and transfer effectiveness (Brown and Eisenhardt 1995;Ciabuschi et al 2012b;Pérez-Nordtvedt et al 2008. The transfer efficiency relates to the actual transfer process in terms of the costs and the speed of the process (cf.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

The Value-Adding Role of the Corporate Headquarters in Innovation Transfer Processes: The Issue of Headquarters Knowledge Situation

Lind

Kang

2017

Manag Int Rev

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The aim of this study is to investigate the value-adding role of corporate monitoring and corporate involvement in 'sticky' inter-subsidiary innovation transfer environments. The value added role of these two managerial approaches is viewed in terms of their impact on innovation transfer efficiency and effectiveness. Based on the network view of the MNC, our research builds on the notion that the corporate headquarters (CHQ) is ill-informed and may suffer from a radical uncertainty about what it actually knows and needs to know. By using a data sample containing 87 innovation transfer projects in 25 multinational companies, we test six sets of hypotheses. Overall, our findings show that the value added of CHQ monitoring as well as an active CHQ involvement is considerably constrained. However, contrary to our expectations, the results show that CHQ monitoring gives rise to an increase in both transfer efficiency and effectiveness when the 'stickiness' is based on tangible resource constraints. The results imply that when it comes to CHQ involvement during the innovation transfer processes, the choice between a handsoff and a hands-on approach has to be understood in the light of the CHQ's knowledge situation.

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Upgrading without formal integration in M&A: The role of social integration

Oliveira

Sahasranamam

Figueira

et al. 2019

Global Strategy Journal

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Research summaryBy adopting a phenomenon‐based research approach, we examine the case of an emerging market (EM) supplier upgrading its position in the automotive global value chain (GVC) through the acquisition of a technologically advanced firm from a developed market (DM). Drawing on GVC and social integration literature, we explore the role of social integration adopted by the EM acquirer to achieve upgrading through acquisition. We develop a conceptual framework where we explain the different social integration mechanisms that EM multinationals employ before and after acquisitions to achieve upgrading.Managerial summaryWhen analyzing an EM firm acquiring a DM firm we found that social integration is a key factor that enables knowledge transfer, particularly if no formal or structural integration occurs. This suggests that the development of mechanisms to facilitate strong socially integrated relationships with acquired firms is central for such type of acquisitions. Our research shows that EM firm managers need to put in place combinations of social integration mechanisms during different phases of the acquisition. Environmental and cognitive social integration mechanisms are crucial for gaining initial legitimacy. Furthermore, affective social integration is important for initiating process and functional upgrading, while cognitive social integration mechanisms become important for initiating intersectorial upgrading.

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Headquarters involvement and efficiency of innovation development and transfer in multinationals: A matter of sheer ignorance?

Cited by 58 publications

References 77 publications

Foreign subsidiaries’ internal and external R&D cooperation in South Korea: Explanatory factors and interaction

Foreign subsidiaries’ internal and external R&D cooperation in South Korea: Explanatory factors and interaction

The Value-Adding Role of the Corporate Headquarters in Innovation Transfer Processes: The Issue of Headquarters Knowledge Situation

Upgrading without formal integration in M&A: The role of social integration

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