The roles of external embeddedness and institutional distance in the subsidiary product/process innovation and R&D capacity
| Autor: | Roberto Carlos Bernardes, Cristina Doritta Rodrigues, Felipe Mendes Borini, Muhammad Mustafa Raziq |
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| Rok vydání: | 2020 |
| Předmět: |
Knowledge management
Embeddedness business.industry Strategy and Management Corporate governance 05 social sciences Management of Technology and Innovation 0502 economics and business 050211 marketing Product (category theory) business Process innovation 050203 business & management Industrial organization Distance based |
| Zdroj: | Journal of Knowledge Management. 24:2513-2530 |
| ISSN: | 1367-3270 |
| Popis: | PurposeThis study aims to look at the relationship of external embeddedness and institutional distance (governance aspects) with the foreign subsidiary research and development (R&D) capacity. Furthermore, it examines whether these relationships are mediated by subsidiary product and process innovation, and whether institutional distance plays a moderating role in the relationship between subsidiary innovation and R&D capacity.Design/methodology/approachThe authors draw on survey data from 130 foreign subsidiaries operating in Brazil and test their model using variance-based structural equation modeling.FindingsResults suggest that subsidiary (product and process) innovation fully mediates the relationships between: subsidiary external embeddedness and R&D capacity; and institutional distance and subsidiary R&D capacity, such that the relationship is positive in case of the former and negative in case of the latter. The relationship between subsidiary product and process innovation and R&D capacity is positive and stronger at lower levels of institutional distance.Originality/valueThe research ignores the underlying mechanisms of the external embeddedness and institutional distance relationship with subsidiary R&D capacity. Furthermore, institutional distance based on formal governance aspects and their impacts on subsidiary innovation and R&D capacity are rarely investigated. This paper contributes with regard to these aspects. |
| Databáze: | OpenAIRE |
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