Management Mechanisms of Network Layers in MNE

In recent years the internationalization of industrial R&D has been interpreted as an attempt by technology-intensive companies to exploit location-specific innovation advantages in order to compete in an increasingly globalized environment. Multinational companies are organizing their R&D in the form of integrated networks in order to transfer and adapt knowledge more effectively within their organization. These networks build an additional organizational layer which needs to be managed in order to enfold its full potential. This article illustrates two different management types found within MNE, their variation is based on the differences in corporate structure and culture which lead to different management mechanisms being used. The findings of this article are based on a study of 81 technology-based multinational companies that was undertaken between 1994 and 2002, and followed by an in-depth study of network management mechanisms conducted on 230 networks in 2002-2004.