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Decentralized R&D for Global Product Development: Strategic Implications for the Multinational Corporation

International Marketing Review

ISSN: 0265-1335

Article publication date: 1 May 1992

Abstract

Discusses the effect of a decentralized approach to research and development facility location in the multinational corporation. Presents the comparative advantages of locating R&D facilities in strategic locations around the world. Examines the commitment required by a corporation to have an effective and flexible international research organization. Suggests that, if a company wants truly to be a “player” in the international marketplace, one that is able to compete on both product quality and cost, a decentralized structure which allows for the establishment of autonomous R&D entities is necessary. Substantial risks are involved. Presents research and actual company histories to suggest that these risks could be offset with benefits from the strategic placement of research and development centres on a worldwide basis.

Keywords

Citation

Ogbuehi, A.O. and Bellas, R.A. (1992), "Decentralized R&D for Global Product Development: Strategic Implications for the Multinational Corporation", International Marketing Review, Vol. 9 No. 5. https://doi.org/10.1108/02651339210020295

Publisher

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MCB UP Ltd

Copyright © 1992, MCB UP Limited