Configuring knowledge connectivity and strategy conditions for foreign subsidiary innovation

Daniel S. Andrews, Stav Fainshmidt, Ajai Gaur, Ronaldo Parente

Research output: Contribution to journalArticlepeer-review

1 Scopus citations

Abstract

We argue that product innovation by foreign subsidiaries of multinational corporations is a complex undertaking requiring a theoretical understanding of how managers combine subsidiary structural arrangements, knowledge connectivity, and contextual conditions into configurations that yield innovative products. Accordingly, we integrate relevant conditions from interrelated literature streams and explore their complementarities and substitutions in relation to subsidiary product innovation. Using a neo-configurational approach and data on 183 foreign subsidiaries operating in Europe, we identify six equifinal configurations associated with subsidiary product innovation. We leverage the configurational patterns to elaborate theory of how subsidiary product innovation is primarily driven by the interrelations among the relevant conditions, thus contributing novel insights to research on subsidiary management and global innovation.

Original languageEnglish (US)
Article number102089
JournalLong Range Planning
DOIs
StateAccepted/In press - 2021

All Science Journal Classification (ASJC) codes

  • Geography, Planning and Development
  • Finance
  • Strategy and Management

Keywords

  • FsQCA
  • Global strategy
  • Innovation
  • Knowledge
  • Subsidiary management

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