Internal Embeddedness, Headquarters Involvement, and Innovation Importance in Multinational Enterprises

Francesco Ciabuschi, Henrik Dellestrand and Oscar Martín Martín

Chapter 12 in Knowledge, Networks and Power, 2015, pp 284-317 from Palgrave Macmillan

Abstract: Abstract For organizations upgrading their competitive base, innovation is crucial for survival and prosperity (Baumol, 2002). In the field of international business and management, innovation is considered strategically important for the ability of multinational enterprises (MNEs) to build and sustain competitive advantage, thus creating value (Franko, 1989; Hitt et al., 1996). Given these premises, and in line with recent studies, such as the one made by Garcia-Pont et al. (2009) which suggests that researchers have devoted limited attention to the effects of internal embeddedness on the organizational scope of subsidiary initiatives and competitive advantage, we investigate how subsidiary internal embeddedness, pertinent to innovation-developing activities, affects head-quarters involvement in the development process and how these two factors influence the impact and the importance of the innovation.

Keywords: Partial Little Square; Multinational Corporation; Strategic Management Journal; Innovation Development; International Business Study (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-50882-9_12

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DOI: 10.1057/9781137508829_12

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