R &amp; D Internationalization: Building Organizational Capabilities to Balance Exploration and Exploitation

Vasudeva, Gurneeta; Sonderegger, Petra

doi:10.4337/9781847208859.00013

Cited by 2 publications

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“…Thus, an issue relevant to knowledge seekers is whether they have the capabilities to absorb, eventually transform, and then use, the acquired knowledge. The ability to find a balance between exploration and exploitation, and the ability to integrate new knowledge into the firm’s knowledge base are crucial dynamic capabilities (Vasudeva and Sonderegger, 2007).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

“…The costs of managing and integrating knowledge activities, which are often scattered in different locations, tend to be high. The EMMNE may have to create or upgrade structures, processes and capabilities, and perhaps share its knowledge to offset costs (Narula and Rugman, 2014; Vasudeva and Sonderegger, 2007). However, to be successful, the practice of sharing must be ingrained in the firm’s culture (Minbaeva et al , 2014; Liu et al , 2014), as must have a shared vision (Nair et al , 2015; Peltokorpi and Yamao, 2017).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

“…Thus, subsidiaries must be embedded both externally (to generate knowledge) and internally (to be acknowledged by the parent company and thus be able to transfer the knowledge). Fourth, RKT requires the use of human-resource strategies and the adoption of certain administrative mechanisms to be effective, such as: rules (plans and procedures), sequences (activities organized in a sequence), routines (automated procedures), and teamwork (to be used when there is a need for quality interaction between individuals), in addition to planning, control and evaluation systems (Grant, 2002); shared technological platforms (Vasudeva and Sonderegger, 2007); and the mixing of locals with expatriates (Ghauri and Park, 2012; Ming-Chang et al , 2013). Nonaka and Takeuchi (1995) identify four mechanisms for transforming and transferring knowledge: externalization, when tacit knowledge is codified and made explicit in formal documents; internalization, when explicit knowledge is learned and put into practice; socialization, consisting of sharing and transferring knowledge through practice, guidance and example; and combination, when previous knowledge is combined to create new systemic knowledge. …”

Section: Theoretical Backgroundmentioning

confidence: 99%

See 2 more Smart Citations

International expansion for knowledge acquisition or knowledge acquisition for international expansion?

Kogut

Mello

Rocha

2019

MBR

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Purpose Starting from the knowledge-based view as a theoretical perspective, this study aims to examine how an emerging market multinational enterprise (EMMNE) engages in reverse knowledge transfer (RKT) processes and how such processes are managed by headquarters. Therefore, this paper captures the perspective of top management concerning RKT and the processes used to create, transfer and integrate knowledge. Design/methodology/approach The study uses a longitudinal design based on the case method of investigation. The case selected for the study was a Brazilian company theoretically sampled for being a domestically, regionally and globally important, information-rich company that operates in an industry in which technology plays a crucial role. The company was also selected for having had asset-seeking motives in at least some of its foreign market entries and for having successfully absorbed foreign-acquired capabilities. Findings The study provides counterfactual evidence to the springboard perspective, considering timing and speed of the internationalization and catch-up processes and the size of acquisitions. The study also highlights differences to other emerging market multinational enterprises, concerning the internationalization trajectory and catch-up moves, and to traditional MNEs, regarding RKT challenges and practices. Research limitations/implications The main limitations of the study relate to the case study method, which does not allow for statistical generalization, although it does support analytical generalization. Originality/value The study contributes to the literature by shedding light on the process by which a Latin American multinational firm developed technological capabilities to compete globally, focusing on the symbiotic, self-nurturing relationship between internationalization processes and technology acquisition and integration processes. Moreover, the work provides novel theoretical insights regarding timing, location, size and execution of the RKT activities. Finally, the paper contributes to the understanding of the relational aspects of the RKT process by focusing on building human relationships as the major force behind knowledge integration and examining the resistance of the acquired companies from developed markets to adopt the parent company’s best practices, or to contribute to its integrated knowledge, when the parent company is an EMMNE.

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Section: Theoretical Backgroundmentioning

confidence: 99%