MTEI Seminar by Prof. Charles Dhanaraj, IMD
Event details
| Date | 13.03.2015 |
| Hour | 12:00 › 13:30 |
| Speaker | Prof. Charles Dhanaraj, IMD |
| Location | |
| Category | Conferences - Seminars |
"EVOLUTION OF MULTINATIONAL R&D IN EMERGING MARKETS"
Abstract
The study investigates the growing number of multinational enterprises (MNE) research and development (R&D) centers in emerging markets like India, using in-depth case studies of India based R&D units of nine European MNEs nested within three dominant technology sectors - automotive, information and communication technologies, and pharmaceuticals. Two insights from the global strategy literature - arbitrage, adaptation, and aggregation (AAA) as drivers of -R&D strategy (Ghemawat, 2007) and embeddedness as an enabler for the flow of legitimacy, knowledge and resources within MNE networks (Andersson, et al, 2002) – provide the theoretical anchors. While we find some evidence of the traditional pattern of MNE R&D triggered by adaptation needs of local markets, we also uncover an alternative trajectory, ubiquitous in emerging markets. This trajectory is triggered by arbitrage in emerging markets, and evolves over distinct configurations, each triggered by a set of contingencies. The twin trajectories provide a comprehensive framework to explain the evolution of global innovation networks of MNEs.
Keywords: Innovation, MNE R&D, Emerging Markets, R&D strategy, Arbitrage, Adaptation, Aggregation, AAA framework for R&D, internal embeddedness, technical embeddedness, and business embeddedness.
Abstract
The study investigates the growing number of multinational enterprises (MNE) research and development (R&D) centers in emerging markets like India, using in-depth case studies of India based R&D units of nine European MNEs nested within three dominant technology sectors - automotive, information and communication technologies, and pharmaceuticals. Two insights from the global strategy literature - arbitrage, adaptation, and aggregation (AAA) as drivers of -R&D strategy (Ghemawat, 2007) and embeddedness as an enabler for the flow of legitimacy, knowledge and resources within MNE networks (Andersson, et al, 2002) – provide the theoretical anchors. While we find some evidence of the traditional pattern of MNE R&D triggered by adaptation needs of local markets, we also uncover an alternative trajectory, ubiquitous in emerging markets. This trajectory is triggered by arbitrage in emerging markets, and evolves over distinct configurations, each triggered by a set of contingencies. The twin trajectories provide a comprehensive framework to explain the evolution of global innovation networks of MNEs.
Keywords: Innovation, MNE R&D, Emerging Markets, R&D strategy, Arbitrage, Adaptation, Aggregation, AAA framework for R&D, internal embeddedness, technical embeddedness, and business embeddedness.
Practical information
- General public
- Free