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Influence of internal and external relationships of foreign subsidiaries on innovation performance. Evidence from Germany, Czech Republic and Romania

Tomasz Golebiowski and Malgorzata Stefania Lewandowska

Journal of East European Management Studies, 2015, vol. 20, issue 3, 304-327

Abstract: The paper assesses the influence of foreign-owned subsidiaries’ (FS) intra- and inter-organizational relationships on product innovation performance. Data drawn from CIS figures for the 2006-2008 cover 1747 FS established in Germany, 385 FS in the Czech Republic, and 276 FS in Romania. Our analysis, employing the structural equation model, reveals a positive influence of FS internal relationships (with both local and foreign partners) and of FS external linkages on product and marketing innovation, the strongest in Germany-based FS. Moreover, a significant positive influence of FS internal relationships on external innovation cooperation is shown. Results suggest a relatively deeper embeddedness of Germany-based FS than of FS located in analysed transition economies.

Keywords: foreign subsidiary; internal and external relationships; innovation cooperation; transition economies (search for similar items in EconPapers)
JEL-codes: D83 O32 (search for similar items in EconPapers)
Date: 2015
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