Renewing Dynamic Capabilities Globally: An Empirical Study of the World’s Largest MNCs

Rakesh B. Sambharya () and Jooh Lee
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Rakesh B. Sambharya: Rutgers University-Camden
Jooh Lee: Rowan University

Management International Review, 2014, vol. 54, issue 2, No 1, 137-169

Abstract: Abstract This study empirically tests whether MNCs leverage and exploit existing innovative capabilities to penetrate foreign markets by international diversification. MNCs then utilize these international diversification strategies to develop future new knowledge resources and skills being increasingly developed around the globe. The analyses used a sample of the largest MNCs’ from Europe, Japan and North America representing nine industries. Results indicate that MNCs initial innovative capabilities are positively related to future international diversification. Our analyses showed that international diversification, in turn were positively and significantly related to the MNCs’ future R&D intensity, number of patents, and Technological Impact Index.

Keywords: Dynamic capabilities; International diversification; Innovation; Dynamic capability lifecycle; Multinational enterprises; Capability leveraging; Capability building; R&D intensity; Patents (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (10)

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DOI: 10.1007/s11575-013-0199-7

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