ABSTRACT
In recent discussions of the modern multinational corporation (MNC), the increased competence of foreign subsidiaries and the need for close and increasingly sophisticated collaboration between units in the global corporate network are emphasized. The international dispersion of research and development (R&D) units is integral to this development, often reinforced by the dominance of acquisitions as a global expansion strategy. In this view of the MNC the effective management of an international network of innovative, or potentially innovative, units within a firm becomes an important determinant of competitiveness. Representative contributions in academic research are Doz (1986), Hedlund (1986), Bartlett and Ghoshal (1989), and White and Poynter (1990). However, few of these more speculative contributions have investigated in depth how these transnational or heterarchical processes work and the difficulties involved. Thus, there is a call for studies with a more explicit focus on a phenomenon that captures real action rather than a dream.
