Accessing vs sourcing knowledge: A comparative study of R&D internationalization between emerging and advanced economy firms

Awate, S and Larsen, M M and Mudambi, R (2015) Accessing vs sourcing knowledge: A comparative study of R&D internationalization between emerging and advanced economy firms. Journal of International Business Studies, 46 (1). pp. 63-86.

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Abstract

Research and development (R&D) internationalization is on the rise for advanced economy multinationals (AMNEs) as well as emerging economy multinationals (EMNEs). We study EMNE R&D internationalization by comparing it to that by AMNEs in the context of an emerging, knowledge-intensive industry. We find that these two are fundamentally different processes. While the internationalization of AMNEs' R&D activities can largely be explained in terms of the twin strategies of competence exploitation and competence creation, EMNE R&D internationalization is rooted in the firms' overall catch up strategy to get on par with industry leaders. An in-depth comparison of knowledge flows reveals that within AMNEs, headquarters often serves the primary source of knowledge for R&D subsidiaries. In contrast, within EMNEs, headquarters accesses knowledge from R&D subsidiaries in advanced economies for innovation catch-up. Within this dichotomy, the innovative capabilities of EMNE headquarters develop more slowly and with greater difficulty than those of AMNE subsidiaries.

Affiliation: Indian School of Business
ISB Creiators:
ISB Creators
ORCiD
Awate, S
UNSPECIFIED
Item Type: Article
Uncontrolled Keywords: innovation and R&D,internationalization,emerging market multinationals, catch-up strategies, knowledge flows, headquarters–subsidiary roles and relations
Subjects: Business and Management
Economics
Depositing User: Veeramani R
Date Deposited: 11 Oct 2018 12:26
Last Modified: 11 Oct 2018 12:26
URI: http://eprints.exchange.isb.edu/id/eprint/625
Publisher URL: https://doi.org/10.1057/jibs.2014.46
Publisher OA policy: http://www.sherpa.ac.uk/romeo/issn/0047-2506/
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