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Global R&D organization and the development of dynamic capabilities : Literature review and case study of a Chinese high-tech firm
Journal
Journal of Knowledge-Based Innovation in China
ISSN
1756-1418
ISSN-Digital
1756-1426
Type
journal article
Date Issued
2010-01-26
Author(s)
Abstract
Purpose - How does the internationalization of R&D influence the development of dynamic capabilities? Based on the observation that Chinese high-tech companies internationalize parts of their R&D activities to Western countries before they have established sound domestic R&D capabilities and in opposition to other held beliefs about internationalization drivers this paper aims to investigate the role of global R&D organizational structure in the development of dynamic capabilities.
Design/methodology/approach - This research is based on a qualitative case study using data of one Chinese high-tech firm to develop testable propositions.
Findings - The research develops three main propositions: the loss of competitive advantage and relevant capabilities in the domestic market is more important to the internationalization of R&D than an attempt to enter new international markets; in joint development teams with a partner company, a functional R&D team sub-structure using heavyweight or autonomous teams leads to a higher degree of knowledge exchange in the partner sub-project organization; R&D projects conducted in organizations with higher formal control lead to a higher degree of learning than R&D projects conducted when control is shared with a partner; R&D projects which rely extensively on external knowledge (with no formal control) produce better outcomes for learning than projects conducted under joint control; R&D projects which rely extensively on external knowledge (with no formal control) produce better outcomes for learning than projects conducted in full control.
Research limitations/implications - As the research is based on data of one single case study there are several inherent limitations regarding validity and reliability which need to be covered by future research.
Originality/value - This paper posits that R&D internationalization has a positive influence on the development of dynamic capabilities.
Design/methodology/approach - This research is based on a qualitative case study using data of one Chinese high-tech firm to develop testable propositions.
Findings - The research develops three main propositions: the loss of competitive advantage and relevant capabilities in the domestic market is more important to the internationalization of R&D than an attempt to enter new international markets; in joint development teams with a partner company, a functional R&D team sub-structure using heavyweight or autonomous teams leads to a higher degree of knowledge exchange in the partner sub-project organization; R&D projects conducted in organizations with higher formal control lead to a higher degree of learning than R&D projects conducted when control is shared with a partner; R&D projects which rely extensively on external knowledge (with no formal control) produce better outcomes for learning than projects conducted under joint control; R&D projects which rely extensively on external knowledge (with no formal control) produce better outcomes for learning than projects conducted in full control.
Research limitations/implications - As the research is based on data of one single case study there are several inherent limitations regarding validity and reliability which need to be covered by future research.
Originality/value - This paper posits that R&D internationalization has a positive influence on the development of dynamic capabilities.
Language
English
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Emerald
Publisher place
Bingley UK
Volume
2
Number
1
Start page
25
End page
45
Pages
21
Subject(s)
Division(s)
Eprints ID
219976