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INTERNAL EMBEDDEDNESS AND INNOVATION PERFORMANCE OF OVERSEAS R&D BASE: AN EMPIRICAL STUDY

SHIGEMI YONEYAMA

Graduate School of Business Administration, Gakushuin University, 1-5-1, Mejiro, Toshima-ku, Tokyo 171–8588, Japan

https://doi.org/10.1142/S1363919613400215Cited by:1 (Source: Crossref)

Abstract

The purpose of this paper is to explore the impact of internal embeddedness of overseas R&D base, or the relationship with its parent company, on innovation performance of the base. While existing studies that examined the internal embeddedness have paid most attention to control–autonomy dimension, this paper takes into consideration the factors of information, human, and capital interaction between the base and the parent. Through such multi-faceted investigation, we found that the bases with weaker control by parent and stronger information linkage with parent demonstrated higher performance. Moreover, the research result revealed that the human interaction, e.g., the transfer of R&D manager from parent, had a pivotal roles affecting the degree of both control and information linkage. With these findings, it was argued that to balance dependency and independency in the base–parent relationship and to design appropriate human interactions for realising it would be important management issues in global R&D.

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