A Micro-Foundations Approach to Studying Innovation in the Multinational Subsidiaries

Global Strategy Journal, Forthcoming

44 Pages Posted: 15 Nov 2017

See all articles by N Nuruzzaman

N Nuruzzaman

Rutgers, The State University of New Jersey - Management & Global Business

Ajai Gaur

Rutgers Business School - Newark and New Brunswick

Rakesh B. Sambharya

Rutgers Univeroty-Camden

Date Written: November 12, 2017

Abstract

We study antecedents of innovation performance for the subsidiaries of multinational enterprises (MNEs) using the microfoundations approach. Based on the upper echelons perspective, we argue that managers’ demographic characteristics, such as prior MNE work experience and industry experience affect subsidiary innovation. We tested the hypotheses on a sample of 228 MNE subsidiaries from 11 countries. Results indicate that managers’ industry experience serves as external boundary spanning capability and therefore it has a greater effect in subsidiaries that are autonomous. In contrast, managers’ prior MNE work experience functions as internal boundary spanning capability and therefore it has a smaller effect in subsidiaries that are less autonomous or engage in R&D.

Suggested Citation

Nuruzzaman, N and Gaur, Ajai S. and Sambharya, Rakesh B., A Micro-Foundations Approach to Studying Innovation in the Multinational Subsidiaries (November 12, 2017). Global Strategy Journal, Forthcoming. Available at SSRN: https://ssrn.com/abstract=3069857

N Nuruzzaman

Rutgers, The State University of New Jersey - Management & Global Business ( email )

Newark, NJ
United States

Ajai S. Gaur (Contact Author)

Rutgers Business School - Newark and New Brunswick ( email )

Newark, NJ
United States

Rakesh B. Sambharya

Rutgers Univeroty-Camden ( email )

Camden, NJ 08102
United States

HOME PAGE: http://business.camden.rutgers.edu/faculty-profiles/strategyetc/sambharya/

Register to save articles to
your library

Register

Paper statistics

Downloads
25
Abstract Views
99
PlumX Metrics