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The power of the periphery: Why do 'transnational' approaches to international innovation fail?

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abstract The 'transnational corporation' paradigm is increasingly at odds with empirical findings on international innovation strategy. Analysing a longitudinal case study, we show that the firm's international R&D subsidiaries can be a powerful force that can shape strategy even more than headquarters can. From a literature review that identifies factors and mechanisms by which the firm's periphery is likely to exert this influence, we explore these factors and mechanisms by applying them to our case. Our findings show that international innovation strategies are unlikely to succeed if international R&D subsidiaries use their capabilities and market power to oppose the implementation of this strategy.
   
type journal paper
   
keywords Innovation, international management, R&D, strategy
   
project Subsidiary Initiatives in International Research and Development: A Survival Analysis
language English
kind of paper journal article
date of appearance 1-4-2009
journal Research in International Business and Finance
publisher Elsevier
volume of journal 23
number of issue 2
page(s) 206-221
review double-blind review
   
citation Keupp, M. M., & Gassmann, O. (2009). The power of the periphery: Why do 'transnational' approaches to international innovation fail?. Research in International Business and Finance, 23(2), 206-221.