Evolution of Innovation Networks Across Geographical and Organizational Boundaries: A Study of R&D Subsidiaries in the Bangalore IT Cluster

16 Pages Posted: 10 Dec 2013

See all articles by Amit Karna

Amit Karna

EBS Universität für Wirtschaft und Recht - EBS Business School

Florian A. Täube

European Management School; Université Libre de Bruxelles, Solvay Brussels School of Economics and Management, iCite

Petra Sonderegger

Independent

Date Written: Winter 2013

Abstract

In this paper, we investigate the evolution of multinational corporation (MNC) research and development (R&D) subsidiaries through evolution of innovation networks. Their evolution within and outside MNC R&D subsidiaries has not been investigated in the context of MNCs that source innovation from emerging economies. We do so, using two dimensions: geographical and organizational boundaries. In order to identify a pattern, we chose the information technology (IT) cluster in Bangalore, India, as the context for a qualitative study; for there are MNC subsidiaries that operate and innovate within and outside organizational boundaries, and have strong links with firms within and outside of Bangalore cluster. The globalized nature of the cluster helps us infer the evolution of innovation networks by taking a knowledge flow perspective. We identify four distinct phases based on where and how knowledge flows. We find that the innovation networks of these MNC subsidiaries in emerging economies first develop as hierarchical networks and then extend to the local markets. Within the first part, the networks start with a non‐local nature (phase A) and get embedded into local networks (phase B and phase C), finally developing into non‐local (phase D) market ties that enable MNC headquarters to source innovation from the host country. In an emerging economy context, clusters can serve as a springboard by providing a local environment that can help overcome institutional voids.

Keywords: innovation networks, R&D subsidiaries, local and cross‐border networks, hierarchical‐ and market‐based networks, Bangalore IT cluster

Suggested Citation

Karna, Amit and Täube, Florian A. and Sonderegger, Petra, Evolution of Innovation Networks Across Geographical and Organizational Boundaries: A Study of R&D Subsidiaries in the Bangalore IT Cluster (Winter 2013). European Management Review, Vol. 10, Issue 4, pp. 211-226, 2013. Available at SSRN: https://ssrn.com/abstract=2365945 or http://dx.doi.org/10.1111/emre.12017

Amit Karna

EBS Universität für Wirtschaft und Recht - EBS Business School ( email )

Gustav-Stresemann-Ring 3
65189 Wiesbaden, Hessen
Germany

Florian A. Täube

European Management School ( email )

Rheinstrasse 4N
Mainz, 55116
Germany

Université Libre de Bruxelles, Solvay Brussels School of Economics and Management, iCite ( email )

19 Av Franklin Roosevelt
1050
Brussels
Belgium

HOME PAGE: http://www.solvay.edu

Petra Sonderegger

Independent

No Address Available

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