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Original Articles

A network view of innovation performance for multinational corporation subsidiaries

ORCID Icon, , ORCID Icon & ORCID Icon
Pages 47-67 | Received 16 Jun 2015, Accepted 08 Dec 2016, Published online: 31 Jan 2017
 

ABSTRACT

A network view of innovation performance for multinational corporation subsidiaries: functionality and geography. Regional Studies. The literature has recognized the need to understand better the role of network partner characteristics on innovative performance in cases of multiple network embeddedness. This study argues that innovation performance is partly a function of the value created through intra- and inter-organizational flows of knowledge within and across regions. The analyses are based on two random-effects logistic models with sample selection. Results show that the functional breadth of a subsidiary’s inter-organizational network has an inverted ‘U’-shaped relationship with its radical and incremental innovation performance. Additionally, radical innovation performance is influenced by internal and external partners from different geographical locations.

摘要

MNC子公司的创新表现之网络观点:功能性与地理。Regional Studies. 既有文献已认识到必须更佳地理解多重网络镶嵌的案例中,网络伙伴特徵之于创新表现的角色。本研究主张,创新表现部分是透过区域之内与之间的知识在组织内部与之间的流动所创造的价值之功能。该分析根据案例选择的两个随机效果逻辑斯模型。结果显示,子公司的跨组织网络之功能幅度,随着突破且递增的创新表现,而具有反向的U型关係。此外,突破性的创新表现,受到来自不同地理区位的内部及外部伙伴所影响。

RÉSUMÉ

La performance en matière d’innovation des filiales des entreprises multinationales (EMN) du point de vue des réseaux: la fonctionnalité et la géographie. Regional Studies. La documentation a bien noté qu’il faut mieux comprendre le rôle des caractéristiques des partenaires de réseau pour ce qui est de la performance en matière d’innovation dans le cas de l’intégration de multiples réseaux. L’étude affirme que la performance en matière d’innovation est en partie fonction de la valeur créée par le canal des flux de connaissance intra- et inter-organisationnels au sein et à travers des régions. Les analyses sont fondées sur deux modèles logistiques à effets aléatoires avec sélection de l’échantillon. Les résultats montrent que l’étendue fonctionnelle du réseau inter-organisationnel d’une filiale a un rapport en forme de ‘U’-inversé avec sa performance radicale et graduelle en matière d’innovation. En plus, la performance radicale en matière d’innovation est influencée par des partenaires intérieurs et extérieurs qui proviennent de différentes zones géographiques

ZUSAMMENFASSUNG

Eine Netzwerkperspektive der Innovationsleistung von Filialen multinationaler Konzerne: Funktionalität und Geografie. Regional Studies. In der Literatur wird anerkannt, dass die Rolle der Merkmale von Netzwerkpartnern für die innovative Leistung in Fällen von mehrfacher Netzwerkeinbettung besser erforscht werden muss. In dieser Studie argumentieren wir, dass die Innovationsleistung teilweise eine Funktion des durch intra- und interorganisationelle Wissensströme innerhalb und zwischen Regionen erzeugten Werts darstellt. Die Analysen beruhen auf zwei Zufallseffekt-Logistikmodellen mit Stichprobenauswahl. Aus den Ergebnissen geht hervor, dass die Funktionsbreite des interorganisationellen Netzwerks einer Filiale eine Beziehung in Form einer inversen ‘U’-Kurve zu seiner radikalen und inkrementellen Innovationsleistung aufweist. Darüber hinaus wird die radikale Innovationsleistung von internen und externen Partnern an verschiedenen geografischen Standorten beeinflusst.

RESUMEN

Una perspectiva de redes sobre el rendimiento innovador de las subsidiarias de empresas multinacionales: funcionalidad y geografía. Regional Studies. La literatura previa ha reconocido la necesidad de comprender mejor el papel que las características de los socios de redes tienen en el rendimiento innovador en casos de la integración de redes múltiples. En este estudio argumentamos que el rendimiento innovador es en parte una función del valor creado mediante los flujos de conocimiento intra e interorganizativos dentro y entre regiones. Los análisis se basan en dos modelos logísticos de efectos aleatorios con una selección de muestra. Los resultados evidencian que el alcance funcional de la red interorganizativa de una subsidiaria presenta una relación en forma de ‘U’ invertida con su rendimiento innovador radical e incremental. Asimismo el rendimiento innovador radical está influido por socios internos y externos de diferentes lugares geográficos.

JEL:

ACKNOWLEDGEMENTS

Authors are most sincerely grateful to two anonymous referees as well as the editor for their insightful comments and suggestions which improved prior versions of this paper.

DISCLOSURE STATEMENT

No potential conflict of interest was reported by the authors.

SUPPLEMENTAL DATA

Supplemental data for this article can be accessed at http://dx.doi.org/10.1080/00343404.2016.1272756

Notes

1. Asheim (Citation2007, p. 229) conceptualizes an RIS as ‘the institutional infrastructure supporting innovation within the productive structure of a region’ and identifies two subsystems of actors constituting an RIS. The first is called the regional production structure – mainly consisting of companies; the second is called the regional supportive infrastructure (institutional infrastructure).

2. For the results of the selection equations, see Table A1 in the supplemental data online.

3. Given the caution involved in imposing a quadratic on two four-point scales (i.e., internal and external geographical scopes), additional specifications categorizing the four-point scales and taking the lowest value as omitted are provided as additional material (see Tables A2 and A3 in the supplemental data online). For a disaggregated overview of the presence in different regions of the world, see Table A4 in the supplemental data online.

Additional information

Funding

Authors are thankful for the funding received from the Spanish Ministerio de Economía y Competitividad through the project ECO2013-47009-P.

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