Antecedents and outcomes of organizational ambidexterity in global R&D: evidence from Western MNEs in emerging markets
Type
conference paper
Date Issued
2012-10-06
Author(s)
Abstract
Recently, frugal innovations, i.e. affordable, 'good-enough' product innovations, have created a huge demand in emerging markets as they meet the requirements of a large amount of resource-constrained people. Frugal innovations are fundamentally different from advanced, western product innovations designed for developed markets with respect to their architecture, development, as well as business model and organizational implementation. Due to these differences, Western multinational enterprises (MNEs) struggle to design strategies and organizational structures which allow the simultaneous pursuit of both types of innovations. In this article, we therefore investigate how Western MNEs organize their research and development (R&D) to develop both types of innovation simultaneously. Based on multiple case studies in large Western MNEs from the medical equipment industry, our findings show that firms have designed dual R&D structures where advanced product and technology innovations are conducted in the central, Western R&D headquarters while frugal product innovations are developed in the R&D units located in emerging markets. The empirical findings improve our understanding of innovation in emerging markets and yield significant implications for management practice.
Funding(s)
Language
English
Keywords
ambidexterity
frugal innovation
emerging markets
HSG Classification
contribution to scientific community
HSG Profile Area
SoM - Business Innovation
Refereed
Yes
Event Title
32nd Strategic Management Societiy (SMS) Annual International Conference
Event Location
Prague
Event Date
06.-09.10.2012
Subject(s)
Division(s)
Eprints ID
221655