The evolution of innovative activity in Asian emerging market subsidiaries of Western MNC’s: the case of Bühler India

Sarah Franz ()
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Sarah Franz: Gothenburg University

Asian Business & Management, 2021, vol. 20, issue 1, No 4, 105-130

Abstract: Abstract Subsidiaries of Western multinational companies located in Asian emerging markets are increasingly taking on a more competence-creating role. However, few studies have explored how these subsidiaries evolve from low-cost manufacturing to innovation. This study builds on longitudinal case data retrieved at the Indian subsidiary of Swiss processing technology manufacturer Bühler AG. The results reveal cross-functional interaction as a key mechanism driving subsidiary evolution and suggest that the relative importance of internal and external linkages varies based on the type of innovation. Thus, managers should also pay attention to innovation-related capabilities developed by other departments than official R&D units.

Keywords: Subsidiary evolution; Innovation; Knowledge linkages; Cross-functional interaction; Emerging markets; R&D (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (2)

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DOI: 10.1057/s41291-019-00083-1

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