“…While creating an atmosphere ready for innovation may be different for different industries and/or companies, McMillan et al (2000) found that an internal culture of scientific information openness was found to have higher R&D performance than a culture of secrecy. With the changing role of subsidiaries in MNEs and the benefits associated with greater intrafirm, parent firm-subsidiary linkages (Ambos and Birkinshaw, 2010;Bouquet and Birkinshaw, 2008), particularly through the use of virtual teams (Kauppila et al, 2011;Phene and Almeida, 2008), this study proposes that when firms are able to more freely access and share unique "internal" market and technical information through a common vision that values openness rather than secrecy (McMillan et al, 2000;McMillan et al, 1995), they are likely to stimulate their innovative capacity to develop greater explorative rather than exploitative innovations. Stated formally, Hypothesis 2a.…”