Session 40

Knowledge, Innovation and Global Strategy

Track G

Date: Tuesday, October 9, 2012


Time: 15:45 – 17:00

Common Ground

Room: Terrace 1


  • Ulf Andersson, Mälardalen University

Title: Access to Local and Global Supply Bases as a Drive of Outsourcing Strategy


  • Michael Mol, Copenhagen Business School
  • Chris Brewster, University of Reading

Abstract: There is a large literature discussing the activity, firm, and industry level determinants of outsourcing. But this literature generally takes a demand-based perspective. We argue for a complementary supply-side approach, which suggests that firms outsource more when they have easy access to both local and global supply bases, as opposed to only one or the other. We provide evidence from a large panel data study that home-based multinationals outsource more than either local firms or foreign subsidiaries. We further investigate whether distance from the home country, whether cultural or institutional, plays a role in determining outsourcing levels of foreign subsidiaries, but find no evidence this is the case.

Title: Adoption of Strategic Initatives: The Role of Piloting


  • Rhoda Davidson, University of Geneva
  • Bettina Büchel, IMD

Abstract: We examine the role of piloting in the adoption of intended strategic initiatives within multinational firms. Drawing on knowledge transfer and institutional theory we suggest that piloting can be used by MNCs to create templates of new global practices in selected subsidiaries before the rollout across the firm. Starting with an initial exploratory case analysis followed by quantitative analyses we found that the multi-dimensional piloting construct - pilot credibility, replicability and feasibility - influences the adoption responses of subsidiary managers. Piloting increases both affective commitment to change and implementation of new practice initiatives and there is support that affective commitment mediates the relationship between piloting and strategic initiative implementation.

Title: Antecedents and Outcomes of Organizational Ambidexterity in Global R&D: Evidence from Western MNEs in Emerging Markets


  • Marco Zeschky, University of St. Gallen

Abstract: Recently, frugal innovations, i.e. affordable, 'good-enough' product innovations, have created a huge demand in emerging markets. Frugal innovations are fundamentally different from advanced, western product innovations with respect to their architecture, development, as well as business model and organizational implementation. Due to these differences, Western MNEs struggle to design organizational structures which allow the simultaneous pursuit of both types of innovations. In this article, we empirically investigate how Western MNEs overcome this challenge. 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.

Title: Behind the Link Between Crossborder Venture Capital and Foreign Direct Investment: Signals and Institutions


  • Curtis Moore, West Virginia University
  • Roberto Ragozzino, University of Tennessee
  • Garry Bruton, Texas Christian University
  • Mike Peng, University of Texas at Dallas

Abstract: Drawing on signaling theory and the institution-based view, we develop a theoretical model to argue that a country’s inward crossborder Venture Capital (VC) serves as a scouting function for foreign investments by MNCs (i.e., FDI). Drawing on signaling theory (Spence, 1974), we argue that VC, as an early stage investment, can be viewed as a signal to indicate the attractiveness of a country as an investment site that may pull in FDI. Furthermore, the institution-based view suggests that the more stable a host country is, the more likely it is to receive inward investment in the form of VC and/or FDI. Therefore, we argue that the relationship between VC and FDI that a country received is conditioned on a host country’s level of stability—along legal, political, and economic dimensions.

Title: Does Co-location Accelerate Knowledge Outflows from FDI? The Role of MNC Subsidiaries’ Technology Sourcing Strategies


  • Alessandra Perri, Ca' Foscari University of Venice
  • Raffaele Oriani, LUISS Guido Carli University
  • Francesco Rullani, LUISS Guido Carli University

Abstract: Despite the strategic importance of the knowledge outflows from FDI for local firms’ competitiveness, no study has focused on the speed at which this phenomenon takes place. However, this issue is crucial since the speed at which firms absorb external knowledge influences the time they need to carry out subsequent innovations, their ability to adapt to external changes and enter new markets, thus ultimately affecting their chances to achieve a competitive advantage. This paper tries to fill this gap, by investigating the temporal patterns of knowledge outflows between foreign subsidiaries and firms located in host-regions. Combining International Business literature with insights on Innovation Strategy, we provide evidence on the timing of this phenomenon, and discuss the role played by multinational firms’ technology sourcing strategies.

Title: From Intergenerational Learning to Dynamic Capability: a Comparative Approach Between France and Japan


  • Sakura Shimada, University of Paris-Dauphine

Abstract: In this research in progress, we analyze the relationship between intergenerational learning and organizational performance. Our proposition is that intergenerational learning can leverage dynamic capabilities of organizations, by ensuring the effective reconfiguration of organizational competences, in a dialectic between continuity and change. Looking for key factors enabling the reconfiguration of organizational competences, we analyze the influence of interpersonal characteristics, group-level characteristics, and managerial features on intergenerational learning, for three different functions of dynamic capabilities (the extension, creation and modification of competences). Considering the necessarily embedded nature of intergenerational learning mechanisms, we lead a multiple case-study across an international comparison between France and Japan.

All Sessions in Track G...

Sun: 08:00 – 09:15
Session 129: Strategy Implementation: Global Challenges
Sun: 09:30 – 10:45
Session 130: Practicing Strategy in Transition Economies: Reframing, Rethinking and Renewing
Sun: 11:15 – 12:30
Session 131: Global Strategies in the Service Sector
Sun: 15:15 – 16:30
Session 29: Strategy and Outsourcing
Mon: 08:00 – 09:15
Session 32: The Dynamics of Internationalization
Mon: 09:30 – 10:45
Session 34: Emerging Market/Advanced Market Strategic Interactions
Mon: 13:30 – 14:45
Session 33: Internationalization, Diversification & Performance
Mon: 16:30 – 17:45
Session 35: Entry Modes, Exit and Outcomes
Session 39: Global Strategies
Tue: 08:00 – 09:15
Session 37: Subsidiary Strategy
Tue: 11:00 – 12:15
Session 41: International M&A as an Entry Mode Strategy
Tue: 14:15 – 15:30
Session 30: Politics, Institutions, Political Risk & Global Strategy
Tue: 15:45 – 17:00
Session 40: Knowledge, Innovation and Global Strategy
Session 42: A Q&A with Pilsner Urquell: Strategy from a Small Nation
Tue: 17:30 – 18:45
Session 38: Global Managers and Managing Globally

Strategic Management Society