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Article
Publication date: 21 February 2020

Rafael Morais Pereira, Felipe Mendes Borini, Leandro Lima Santos and Moacir de Miranda Oliveira Jr

The purpose of this study is to analyze the influence of environmental conditions of the subsidiaries’ host country in the process of developing global innovation. It is…

Abstract

Purpose

The purpose of this study is to analyze the influence of environmental conditions of the subsidiaries’ host country in the process of developing global innovation. It is argued that, even though the local environment in which subsidiaries are placed must be taken into account, this is not the only important factor to directly create global innovation, but it also becomes necessary for the subsidiaries to be endowed with autonomy, in this sense allowing them to enjoy the local conditions for innovation purposes.

Design/methodology/approach

A quantitative approach is opted for the research development, while the hypotheses were evaluated from the analysis of the relationship between four constructs: global innovation, local market conditions, local competitive dynamics and autonomy to innovate. The structural equation modeling technique is applied, using data from 172 foreign subsidiaries located in Brazil.

Findings

The validity and reliability parameters analyzed in the proposed model were suitable (average variance extracted, Cronbach’s alpha, composite reliability and discriminant validity). H1 (the better the market conditions of the host country, the greater the subsidiary’s autonomy to innovate) was not supported. However, both H2 and H3 were supported, suggesting the influence of local competitive dynamics on autonomy to innovate, and also the influence of autonomy to innovate on global innovation, respectively.

Originality/value

This paper provides some contributions for the advance in researches about the global innovation management, considering the subsidiaries’ perspective, showing the relevance of the subsidiary’s autonomy for the development of global innovation given a favorable local competitive dynamic.

Details

Journal of Science and Technology Policy Management, vol. 11 no. 2
Type: Research Article
ISSN: 2053-4620

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Article
Publication date: 26 July 2019

Christophe Midler

The last few decades have seen the rapid emergence of two transformative streams in large firms. The first is the development of project management, aimed at improving the…

Abstract

Purpose

The last few decades have seen the rapid emergence of two transformative streams in large firms. The first is the development of project management, aimed at improving the performance of innovation management, while the second, the internationalization of innovation organizations and processes in response to strategies of redeployment toward emerging countries. Both streams have been closely analyzed in the fields of project management and international management, respectively. However, the links between the two have been less studied. The purpose of this paper is to consider the hypothesis that a firm’s projectification might have an important impact on its pattern of internationalization in innovation.

Design/methodology/approach

First, we present the models of internationalization of innovation processes used in the multinational corporation literature. This field essentially focuses on the components of permanent organizations: global internationalization strategy and legacy, R&D footprint, characterization of local subsidiaries and the role of central head offices. Projects figure only as a context in which those elements operate, not as a structuring variable of the global innovation process pattern. The authors challenge this view by exploring whether the specificities of the firm’s projectification pattern can influence how it builds its global innovation process. The paper is based on a longitudinal case where the authors analyze the organizational transition within the Renault group, an emblematic case of a multinational that implemented a spectacular internationalization transition in the 2000s.

Findings

Our results demonstrate project organizing’s major impact on the internationalization patterns of innovation processes within the firm. They show how the deployment of a polycentric innovation footprint has been the consequence of a specific projectification transition, giving the project and program functions the autonomy to transgress centralized product development norms to adapt their project to the local environment; use the initial breakthrough project as the foundation for a new and specific global product development network through a lineage logic; and sustain this innovation global network as a permanent process of the firm.

Research limitations/implications

The paper demonstrates the importance of the organization’s projectification characteristics as an important vector for successfully implementing the most advanced internationalization strategies (i.e. reverse innovation) and innovation processes models (i.e. integrated networks).

Practical implications

The paper characterizes project management related conditions that can govern the success of innovation strategies in high-growth emerging countries: the autonomy and empowerment of project functions; colocation and integration of teams; existence of a program function; and HR policies capable of supporting lineage management and project-to-project learning processes.

Originality/value

Bridging project management literature with multinational management literature. Demonstrate the key impact of projectification on internationalization pattern of the firm. Longitudinal analysis of a firm internationalization transition on a ten-year period.

Details

International Journal of Managing Projects in Business, vol. 12 no. 3
Type: Research Article
ISSN: 1753-8378

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Article
Publication date: 16 May 2019

Elisangela Lazarou Tarraço, Roberto Carlos Bernardes, Felipe Mendes Borini and Dennys Eduardo Rossetto

Is the development of local innovation capabilities enough for foreign subsidiaries in emerging markets to be able to integrate into global R&D projects? The authors argue…

Abstract

Purpose

Is the development of local innovation capabilities enough for foreign subsidiaries in emerging markets to be able to integrate into global R&D projects? The authors argue that it is not. The purpose of this paper is to show the central role of R&D capacities when it comes to inserting foreign subsidiaries in emerging markets into global R&D projects.

Design/methodology/approach

The study investigated 131 foreign multinational subsidiaries operating in Brazil. For each subsidiary, the authors surveyed two to five directors or C-level executives from innovation, R&D, engineering, product development and projects. the authors used structural equation modeling for analysis.

Findings

The results indicate that product and process innovations alone do not guarantee the insertion of the emerging market subsidiaries into global innovation projects. Such insertion depends on the subsidiary’s accumulation of R&D capacities.

Practical implications

The results reinforce the central issue of building product and process innovation capabilities as the first step toward a blueprint for global projects. However, the effort is not limited to these initiatives. Product and process innovation efforts need be reverted in headquarters’ eyes in order for subsidiaries to gain R&D center status. To achieve this, subsidiaries must align their technological innovations with multinational corporations’ innovation strategies.

Originality/value

In authors’ view, this study contributes to the literature in three main areas: the evolutionary process of innovation capability in subsidiaries, the reverse innovation debate and the discussion of subsidiaries’ initiatives.

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Article
Publication date: 4 April 2020

Mouhoub Hani and Giovanni-Battista Dagnino

Studies on inter-firm relationships have recently shifted their attention from dyadic networks to more globally driven network structures. This condition occurs because…

Abstract

Purpose

Studies on inter-firm relationships have recently shifted their attention from dyadic networks to more globally driven network structures. This condition occurs because embeddedness in global network structures may improve firm innovation and performance. In addition, the improvement of firm innovativeness and performance seems higher when globally networked firms both compete and cooperate between and among them. In this paper, we categorize the simultaneous interplay of cooperation and competition in the global arena as global network coopetition (GNC). Under GNC, multinational enterprises act jointly with their global partners-rivals to improve performance, at the same time by sharing complementary resources (cooperation side) and by undertaking independent actions to enhance their own performance (competition side). This paper aims to expand existing research on network and global coopetition by shedding light on the effects of coopetition between and among firms belonging to global network structures on value capture and innovation performance.

Design/methodology/approach

Using a sample of 100 firms belonging to 14 industries organized in 47 global networks of different sizes, the authors conducted a longitudinal empirical study over the period 2000-2014 covering 1,098 observations, 1,717 interfirm relationships and 78 inter-networks linkages. A multiple regression model on panel data with random effects was conducted on the sample of 1,098 observations related to the global automotive industry to test the research hypotheses.

Findings

Findings show that GNC enhances firm performance and innovation outcomes. In addition to GNC, structural characteristics such as network size, network position and network diversity have significant positive or negative effects on innovation and performance outcomes of firms belonging to these global network structures.

Research limitations/implications

Our research offers a contribution to the literature dealing with global networked structures’ effects on firm innovation performance. In fact, it effectively complements prior work on outcomes of coopetition between firms embedded in complex network structures. It also advances research in the area by introducing the notion of GNC as a network by which firms can enhance their innovation performance and, therefore, their global innovation performance. This study has some limitations. First, we acknowledge that it is focused only on 14 global coopetitive networks. It could be promising to extend the scope to integrate other networks. Second, our measures of firm actions as based on a content analysis of news reports related to firms. It would be important to complement this data collection by conducting a qualitative analysis (interviews). Atlast, it could be promising to include the study of customer needs in the new product development process.

Practical implications

Our study also offers some insights into the management of coopetition. In fact, by taking into account the existence of a context in which global coopetition networks play a role, managers may be better positioned to effectively deal with the paradox of being a partner of their direct rivals to improve their firms’ innovativeness and, consequently, achieve good performance, on the one hand, and to maintain relationships within several networks by taking into account their structural properties such as centrality and diversity, on the other hand.

Originality/value

We contribute to extant network coopetition literature in two ways. First, we introduce the notion of GNC to detect coopetition occurrence in global network structures. GNC refers to a context where actors in various networks belonging to different industries and geographies cooperate in a one (or more) innovative project/s, while simultaneously keeping on competing within and between their networks. Second, we contribute to network coopetition by analyzing specific GNC effects on firm innovation performance. In so doing, we can provide a deeper analytical understanding of GNC performance effects on firms operating in global network contexts.

Details

Journal of Business & Industrial Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0885-8624

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Article
Publication date: 7 November 2016

Jason Potts

The purpose of this paper is to examine how national innovation policies strategically interact to form emergent de facto global entrepreneurship and innovation policies.

Abstract

Purpose

The purpose of this paper is to examine how national innovation policies strategically interact to form emergent de facto global entrepreneurship and innovation policies.

Design/methodology/approach

Reviews the innovation economics theory and policy literature, synthesizing the existing work into three models (autarky, cooperation and competition), then adds four new models of strategic interaction (asymmetric information, duopolistic competition, competitive factor mobility and complementary assets).

Findings

The different models predict very different outcomes. Therefore, it matters which model is true. Entrepreneurship and innovation policy needs to start with an improved science of strategic global interaction of national innovation policy.

Research limitations/implications

Conceptual approach only, without empirical analysis, calls for empirical analysis to test the different models.

Practical implications

Points to the problem of absence of global coordination in innovation policy arising from strategic interactions between national innovation policies. Recognizes that entrepreneurship public policy is caught in this strategic game, and that there are missing global institutions here.

Social implications

Improved innovation policy should enable more effective entrepreneurial environments.

Originality/value

Proposes seven models for understanding global strategic interaction of innovation policy, out of which four are new. These new ones are highly relevant to entrepreneurship policy.

Details

Journal of Entrepreneurship and Public Policy, vol. 5 no. 3
Type: Research Article
ISSN: 2045-2101

Keywords

Content available
Article
Publication date: 7 September 2015

Robin von Haartman and Lars Bengtsson

The interest in global purchasing has increased significantly in recent years, but the impact on product innovation is not well understood. The purpose of this paper is to…

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26330

Abstract

Purpose

The interest in global purchasing has increased significantly in recent years, but the impact on product innovation is not well understood. The purpose of this paper is to empirically analyse the impact of global purchasing on product innovation sourced from suppliers, while taking into account how firms integrate their suppliers.

Design/methodology/approach

The data used in this study are from the International Purchasing Survey, an international online survey on purchasing and supply management conducted in 2009. The data are analysed using factor and regression analyses.

Findings

The paper shows that global purchasing has no direct impact on product innovation performance. However, supplier integration is more strongly associated with product innovation performance for firms purchasing globally compared to firms purchasing regionally.

Practical implications

The implication is that when companies purchase globally, they must have a highly developed purchasing department in order to sustain a high level of innovation. For firms purchasing only regionally, the role of the purchasing department is diminished, at least in terms of contributing to innovation.

Originality/value

This paper contributes to the discussion of potential advantages and disadvantages of global purchasing. First, the paper provides an explanation for the ambiguous results of previous research. Product innovation does not depend on whether firms are purchasing globally or not, it depends on how they purchase. This paper has showed that when purchasing globally, the role of the purchasing department becomes crucial for product innovation. The proficiency and activities of the purchasing department largely determine the success, in terms of supplier product innovation, of global purchasing.

Details

International Journal of Operations & Production Management, vol. 35 no. 9
Type: Research Article
ISSN: 0144-3577

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Article
Publication date: 3 May 2016

Arun Sharma and Subhash Jha

Western business-to-business firms are under increasing competition from firms in emerging nations. As examples, Mindray in medical devices, LiuGong in earth moving…

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2563

Abstract

Purpose

Western business-to-business firms are under increasing competition from firms in emerging nations. As examples, Mindray in medical devices, LiuGong in earth moving equipment, Tata motors in Buses and Suzlon in Wind turbines are emerging as strong competitors in their industries. Yet despite increased competition from emerging nation firms, insufficient research has examined the growth of these firms, specifically in the areas of technology and innovation development processes. The purpose of this study is to examine how emerging nation business-to-business firms that have global ambitions achieve technology competence.

Design/methodology/approach

The authors examined several case studies on emerging market business-to-business firms that have moved to global markets and highlight the following five: LiuGong China (excavating products), Mindray China (medical equipment), Suzlon Energy India (wind generators), Tata Motors Buses India and BYD Auto China (batteries to electric cars). The firms are in business-to-business markets, except for BYD China that emerged as a business-to-business battery supplier but is currently in both business-to-business and business-to-consumer markets.

Findings

The authors find that firms in emerging markets that have global ambitions follow different approaches to innovation development processes from conventional theories and assumptions held by scholars and practitioners in Western developed countries. Our cases suggest that firms follow the proposed progression: domestic markets – internally developed technology; domestic markets –acquired technology; and finally to, global markets – acquired technology.

Researchlimitations/implications

The authors contribute to research in three areas. First, they suggest that the innovation development process for emerging market firms is different from the Western world. Second, they provide a framework of innovation development process that can be tested in multiple environments. Third, this study suggests a deeper examination of the longitudinal development of business-to-business firms, an area that has received less attention.

Practicalimplications

The authors suggest that firms need to better track their competition from emerging nations because emerging nation firms can quickly acquire technology to become strong competitors.

Originality/value

Extant research has not examined these issues.

Details

Journal of Business & Industrial Marketing, vol. 31 no. 4
Type: Research Article
ISSN: 0885-8624

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Article
Publication date: 29 October 2018

David Ahlstrom, Xiaohua Yang, Liang Wang and Changqi Wu

This paper aims to study largely recent aspects of entrepreneurship and innovation in China. It synthesizes the research in the current special issue (SI) of Multinational

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1577

Abstract

Purpose

This paper aims to study largely recent aspects of entrepreneurship and innovation in China. It synthesizes the research in the current special issue (SI) of Multinational Business Review (MBR) on this topic. In addition, this paper differs from other work on this topic in examining entrepreneurship and innovation from a more global standpoint with relevant international effects.

Design/methodology/approach

The paper provides an overview of the literature on entrepreneurship, innovation and key related topics such as firm and economic growth, as well as linking this research to related international works. It also summarizes the papers of the SI.

Findings

The authors’ analysis suggests that the study of entrepreneurship and innovation should be placed in the context of a country’s economic development and institutional environment as well as the firm internationalization trajectories and business models. In addition, the authors believe that a good understanding of economic growth in a transition economy like China (which is a key goal of China’s recent emphasis on innovation) is facilitated by understanding the comparative advantages and disadvantages of an economy with respect to the global innovation system.

Originality/value

The authors’ study explores the local-global and parent-subsidiary connectivity and co-evolution of firm strategies and the institutional environment in entrepreneurship and innovation in emerging and transition economies. The authors summarize and synthesize the papers in this SI to provide the results as well as some directions for future research in the domain of entrepreneurship, innovation and new venture creation, which is believed to be a key engine of economic growth in the coming years.

Details

Multinational Business Review, vol. 26 no. 4
Type: Research Article
ISSN: 1525-383X

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Article
Publication date: 19 July 2013

Dora Marinova, Xiumei Guo and Yanrui Wu

This paper aims to examine recent trends and China's role in the emerging global green system of innovation (GGSI) and present the major achievement in China's R&D sectors…

Abstract

Purpose

This paper aims to examine recent trends and China's role in the emerging global green system of innovation (GGSI) and present the major achievement in China's R&D sectors and major challenges faced by the country. The authors use China's role in the clean development mechanism (CDM) as a case to demonstrate the country's willingness to adopt new technology and green innovation.

Design/methodology/approach

In order to understand China's transformation towards the GGSI, the approach used in this study is a review of innovation systems literature combined with analysis of statistical data from various sources. The authors also build an innovation model for the emerging global green system of innovation to demonstrate the building blocks which allow for transformational system failures to be avoided. The clean development mechanism (CDM) is used as a case example as to how GGSI works.

Findings

This paper puts into perspective some recent developments in innovation and argues that there is enough evidence to claim that the world is re‐orienting towards a global green system of innovation in which China is already one of the most significant players.

Originality/value

Through building a new innovation model, this study demonstrates the complexity and the development of innovation in the context of China's transformation towards the GGSI.

Details

Journal of Science and Technology Policy in China, vol. 4 no. 2
Type: Research Article
ISSN: 1758-552X

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Book part
Publication date: 13 June 2013

Venkatesh Shankar and Nicole Hanson

Purpose – The purpose of the paper is to advance knowledge on how firms should rethink and develop their innovation architecture by leveraging emerging market…

Abstract

Purpose – The purpose of the paper is to advance knowledge on how firms should rethink and develop their innovation architecture by leveraging emerging market opportunities.Design/methodology/approach – The paper provides a conceptual framework comprising the drivers and consequences of innovation architecture across emerging and developed markets. It also highlights emerging market innovation characteristics using detailed examples.Findings/conclusions – Most of the future growth in the global economy will come from emerging markets. Successful global firms will have to rethink and develop their innovation architecture by leveraging innovations developed for emerging markets. By balancing the long-term costs and benefits of innovations in both developed and emerging markets, global firms can successfully reshape their innovation architecture.Practical implications – From a practical perspective, the paper provides guidelines to executives for managing innovation architecture across emerging and developed markets. Innovations appropriately developed and launched in emerging markets have the potential to expand global consumer base and increase shareholder value.Social implications – From a societal standpoint, the paper helps improve consumer welfare in emerging markets by offering a roadmap to develop safe, relevant, and affordable products for mainstream customers. Reverse innovations, developed primarily for emerging markets also benefit consumers in developed markets and enhance their social welfare.Value/originality – The paper provides an original theoretical contribution in an important and underexplored research area – emerging market innovation. It is the first to develop an in-depth analysis of innovation architecture, advance a conceptual framework of the role of emerging markets in the development and consequences of innovation architecture, and offer a roadmap for strategic management of innovation architecture. Academic researchers, practitioners, and policy makers will benefit from this paper.

Details

Review of Marketing Research
Type: Book
ISBN: 978-1-78190-761-0

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