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Achieving Subsidiary Integration in International Innovation by Managerial “Tools”

abstract Our study articulates and empirically tests a theory of how the parent firm of a multinational corporation (MNC) can achieve global integration of subsidiaries into the MNC’s intrafirm network by using managerial “tools” to manipulate the MNC’s formal organizational
architecture.

Taking a subsidiary’s performance as an observable criterion to measure the success of its integration into the global intra-firm network, the model is tested on a unique dataset of 287
international R&D subsidiaries.

Our findings suggest that the parent firm can actively improve a subsidiary’s performance and hence its integration by encouraging knowledge asset transfer, by granting the subsidiary a mandate for undertaking activities on behalf of the corporation as a whole, and by providing it with more operational autonomy.

These findings open up a deep perspective of how subsidiary integration can be achieved by appropriate managerial “tools” in the context of international innovation. We discuss the implications of these results for the literature and for managers
   
type journal paper
   
keywords Keywords: Subsidiary integration · Organizational architecture · Managerial tools ·
Strategic autonomy · Operational autonomy · International innovation
   
project New theoretical perspectives for international innovation: Research gaps and the need for intrafirm information
language Deutsch
kind of paper journal article
date of appearance 1-4-2011
journal Management International Review
publisher Gabler Verlag (Wiesbaden)
ISSN 0938-8249
ISSN (online) 1861-8901
DOI 10.1007/s11575-011-0072-5
volume of journal 51
number of issue 2
page(s) 213-239
review double-blind review
   
citation Keupp, M. M., Palmié, M., & Gassmann, O. (2011). Achieving Subsidiary Integration in International Innovation by Managerial “Tools”. Management International Review, 51(2), 213-239, DOI:10.1007/s11575-011-0072-5.