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    Organizing for reverse innovation in Western MNCs: the role of frugal product innovation capabilities
    (Inderscience Enterprises Ltd., 2014-03) ;
    Widenmayer, Bastian
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    The burgeoning phenomenon of reverse innovation - i.e., innovations which are adopted first in the developing world - has attracted much academic and managerial attention. However, while existing literature has extensively discussed the risks and opportunities of reverse in-novation for Western multinational companies (MNCs), there is little empirical insight in the question how reverse innovation is organized in the firm. This article investigates how Western MNCs of the healthcare and electronics industries organize their international R&D for reverse innovation. Based on the insights of four case studies, we find that the location of the product mandate (i.e., at the headquarters or the subsidiary) is independent of the MNC's ability to generate reverse innovation. In contrast, we find that the design and development of reverse product innovations are always located in the MNC's subsidiary based in a resource-constrained environment. We argue that the development of frugal product innovation capabilities is a critical success factor in the development of reverse innovation. The article holds important implications for theory and management practice.
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    Scopus© Citations 78
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    How do foreign R&D units in China manage their Chinese R&D staff? An empirical exploration
    (Inderscience Enterprises Ltd., 2011-11-19) ;
    Whereas extant literature has explored the question of why foreign R&D is present in China, we still know almost nothing about how these R&D operations are managed. This applies specifically to the management of Chinese R&D staff who conventionally are not known for their respect of foreign firms' intellectual property rights (IPR). However, foreign R&D units in China are likely to have developed management techniques to deal with such problems. In this paper, we engage in qualitative and quantitative exploration of how foreign R&D units in China manage their Chinese R&D staff. For exploration we develop a conceptual framework on the basis of agency theory and the theory of trusted relationships. Our findings show that those R&D units that have developed adequate measures to manage their Chinese R&D staff have succeeded in making Chinese employees loyal to the R&D unit. These results have important implications for both practitioners and future empirical research.
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    Scopus© Citations 3