Global R&D organization and the development of dynamic capabilities: Literature review and case study of a Chinese high‐tech firm

Ralf Martin Ester, Dimitris Assimakopoulos, Maximilian von Zedtwitz and Xiubao Yu
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Ralf Martin Ester: EESC-GEM Grenoble Ecole de Management
Dimitris Assimakopoulos: EESC-GEM Grenoble Ecole de Management
Xiubao Yu: Tongji University

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Abstract: Purpose– How does the internationalization of R&D influence the development of dynamic capabilities? Based on the observation that Chinese high‐tech companies internationalize parts of their R&D activities to Western countries before they have established sound domestic R&D capabilities and in opposition to other held beliefs about internationalization drivers this paper aims to investigate the role of global R&D organizational structure in the development of dynamic capabilities. Design/methodology/approach– This research is based on a qualitative case study using data of one Chinese high‐tech firm to develop testable propositions. Findings– The research develops three main propositions: the loss of competitive advantage and relevant capabilities in the domestic market is more important to the internationalization of R&D than an attempt to enter new international markets; in joint development teams with a partner company, a functional R&D team sub‐structure using heavyweight or autonomous teams leads to a higher degree of knowledge exchange in the partner sub‐project organization; R&D projects conducted in organizations with higher formal control lead to a higher degree of learning than R&D projects conducted when control is shared with a partner; R&D projects which rely extensively on external knowledge (with no formal control) produce better outcomes for learning than projects conducted under joint control; R&D projects which rely extensively on external knowledge (with no formal control) produce better outcomes for learning than projects conducted in full control. Research limitations/implications– As the research is based on data of one single case study there are several inherent limitations regarding validity and reliability which need to be covered by future research. Originality/value– This paper posits that R&D internationalization has a positive influence on the development of dynamic capabilities.

Date: 2010-04-06
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Published in JKIC, Journal of Knowledge-based Innovation in China, 2010, 2 (1), 25-45 p. ⟨10.1108/17561411011031972⟩

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Working Paper: Global R&D organization and the development of dynamic capabilities: Literature review and case study of a Chinese high‐tech firm (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02313389

DOI: 10.1108/17561411011031972

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