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The purpose of this paper is to investigate important impediments to knowledge creation within newly‐established foreign invested R&D centers in China and India.

The paper presents a framework based on knowledge creation theory in order to understand the barriers for transfer and the creation of innovation‐related knowledge within newly‐established foreign invested R&D units in China and India. The paper utilizes extensive empirical data collected from a case study in three Scandinavian multinational companies (MNCs).

Examples of innovations in China and India within Scandinavian MNCs are presented. Impediments to these innovations are identified with regard to socialization and knowledge creation. Particular skills of R&D employees in China and India are relevant for process innovations, e.g. competencies in codification of knowledge.

A synthesis of existing knowledge creation theory is applied to compare R&D knowledge creation skills of Chinese, Indian, and Scandinavian engineers, within MNCs. The new framework explains knowledge creation in China and India, and can be used in other foreign invested R&D units in these countries. Implications for managers working with newly established foreign invested R&D units in emerging markets are offered.

The purpose of this paper is to investigate differences in the characteristics of knowledge, which is very important for the internationalization of different business activities. In particular, the focus is on internationalization in emerging markets such as China and India.

The paper presents a framework primarily based on knowledge management theory, which is illustrated in relation to interesting cases of four companies that are global leaders.

An R&D knowledge gap still exists in China and India. Differences across business activities exist in terms of the characteristics of the knowledge, which is most important for the internationalization in emerging markets within multinational corporations (MNCs). The most important knowledge for the internationalization of R&D activities is more tacit than it is for manufacturing activities and international purchasing activities. The source of the most important knowledge for the internationalization of R&D activities, as well as manufacturing activities, is more likely to be the MNC itself, than when marketing activities or purchasing activities are internationalized to emerging markets.

A model is developed that illustrates differences between the most important knowledge for the internationalization of key business activities within MNCs. It is proposed that the technical dimension of tacit knowledge is more easily codified than the cognitive dimension of tacit knowledge. The cognitive dimension of local tacit knowledge is crucial for the internationalization of marketing activities, whereas the technical dimension of tacit R&D knowledge from the home base is crucial for the internationalization of R&D activities.

The purpose of this paper is to open a new research frontier concerning industry factors influencing R&D transfer to emerging markets within Western multinational companies (MNCs).

The paper presents a framework based on knowledge transfer, knowledge creation, and innovation theory, which is illustrated in two cases from globally leading MNCs from different industries and technological fields which have established R&D units in China. It addresses the issue of industrial influences on R&D transfer to emerging markets, and the importance of complementary assets for innovation performance.

The framework and empirical research suggest that R&D transfer to new R&D units in emerging markets is less challenging for companies within industries characterized by slow technological development. This is due to dynamics, which result in codification and diffusion of technical knowledge, whereby it is easier to transfer and absorb. When the transformation from exploration to exploitation of knowledge is simple rather than complex within an industry, R&D transfer is less challenging. Leverage of local complementary assets nurtures reverse R&D knowledge transfer – positively impacting innovation performance.

The paper addresses the gap in knowledge transfer theory concerning industrial R&D transfer differences. The paper provides a framework for innovation related industrial contingencies on R&D transfer concerning emerging markets, and it advances the argument that complementary assets are important for R&D in emerging markets. Implications for management in China are outlined. The term captive knowledge transfer is coined.

The purpose of this paper is to examine how a foreign subsidiary operates in emerging markets and integrates market orientation with organizational learning to achieve a competitive lead. It is an attempt to fill an evident gap in the literature of integrating organizational learning into a market-oriented competitive strategy through using a four-step collective learning cycle at General Motors Egypt (GME).

The paper adopts a qualitative case study methodology to thoroughly examine the viewpoints of 90 respondents via in-depth and unstructured interviews with both managers and employees working in a variety of divisions inside GME. An integrative qualitative data analysis approach is used to explore, synthesize, interpret and derive relationships resulting from the collected data.

This work advances the theory of organizational learning by testing the theme of collective learning cycle in a real work setting. It presents a real example of aligning market orientation into a collective learning cycle directed toward achieving competitive advantages.

This study provides scholars and practitioners alike with a real scenario on how and why a four-step organizational learning cycle functions as a building block to generate a competitive advantage. It also discusses the elements of collective learning that are not captured by the four-step collective learning cycle. Factors facilitating market-based organizational learning are also explored. However, the results generated are contingent on the investigated case study circumstances, which are limited in generalizability.

The paper addresses a set of directions through which auto assembly firms leverage both collective learning practices and knowledge-driven strategy to gain competitive advantages. The GME paradigm indicates how a firm can use collective learning not only to respond to an internal need for change but also to react to external market forces and constraints.

This study is the first of its kind to investigate the value of the cyclic learning concept from a strategic viewpoint in a multinational organizational context. It enriches the primarily practitioner literature on aligning collective learning into strategy with rich empirical examination of the learning practices of a leading foreign subsidiary. It resolves a gap in the literature regarding how organizational learning and knowledge management processes are aligned to market-oriented competitive strategy. The paper draws a number of critical research issues that call for refinement of the organizational learning cycle theory.

This paper aims to explore the effect of subsidiary autonomy on knowledge transfers during captive offshoring to emerging markets.

Five longitudinal cases of captive R&D and manufacturing offshoring to emerging markets.

The propositions entail the dual effect of operational subsidiary autonomy on primary knowledge transfer and reverse knowledge transfer. For newly established subsidiaries, operational subsidiary autonomy has a mainly negative effect on primary knowledge transfer and a mainly positive effect on reverse knowledge transfer and local collaboration activities increase this effect. Strategic subsidiary autonomy is mainly negative for primary and reverse knowledge transfer.

Limitations concerning the applied exploratory case study approach suggest that further research should test the identified relationships using surveys, after the initial pilot study.

A gradual increase of operational subsidiary autonomy as the subsidiary capability level increases is beneficial to ensure primary knowledge transfer. Allowing subsidiaries to collaborate locally within the confines of their mandates benefits reverse knowledge transfer.

This paper extends the secondary knowledge transfer concept to include knowledge flows with local collaboration partners, not only other subsidiaries and clarifies the distinction between operational and strategic autonomy concerning local collaboration. A subsidiary asserts operational autonomy when its collaboration with local partners relates to its existing mandate. A subsidiary asserts strategic autonomy when it collaborates with local partners beyond this mandate.

The purpose of this paper is to introduce the special issue on innovation and education towards innovation in China.

The Guest Editors discuss the impetus behind the special issue and describe the papers published in it.

It is evident in the papers presented in this special issue that China is on its way towards becoming world‐class in a number of technological areas.

The paper introduces the special issue on innovation and education towards innovation in China, as well as an agenda for future research in the area.

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.

This study focuses on the linkages between foreign direct investment and the research and development (R&D) and innovation activity of domestic enterprises in Vietnam.

The Heckman selection model approach is applied to a panel dataset of nearly 7,000 Vietnamese firms for the 2011–2015 study period to investigate the impact of foreign presence on the R&D of local firms through horizontal and vertical linkages. Probit model estimation is employed to examine how foreign investment influences the innovation activity of local companies.

While there are a small number of firms carrying out R&D activities in Vietnam, foreign or joint domestic–foreign venture firms are less inclined than domestic firms to undertake R&D. Domestic factors that include capital, labor quality, location and export status of firm have a significant effect on the decision of domestic firms to participate in R&D activity. Only forward linkages and the gross firm output are found to have an impact on the R&D intensity of domestic enterprises, while other factors appear to have no significant influence on how much firms spend on R&D activities.

In order to promote the R&D activity of domestic firms, policy should focus on (1) the backward linkages between local firms in downstream sectors with their foreign suppliers in upstream sectors, and (2) the internal factors such as labor, capital or location that affect the decisions made by domestic firms.

Given that foreign investment may affect R&D and innovation activity of local firms in host countries, the impact is relatively unexplored for many emerging economies and not so in the case of Vietnam. The availability of a unique survey on Vietnamese firm technology and competitiveness provides the opportunity to address this gap in the literature.

Briefly reviews previous literature by the author before presenting an original 12 step system integration protocol designed to ensure the success of companies or countries in their efforts to develop and market new products. Looks at the issues from different strategic levels such as corporate, international, military and economic. Presents 31 case studies, including the success of Japan in microchips to the failure of Xerox to sell its invention of the Alto personal computer 3 years before Apple: from the success in DNA and Superconductor research to the success of Sunbeam in inventing and marketing food processors: and from the daring invention and production of atomic energy for survival to the successes of sewing machine inventor Howe in co‐operating on patents to compete in markets. Includes 306 questions and answers in order to qualify concepts introduced.