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External-internal linkages and overseas autonomy-control tension: the management dilemma of the Japanese RandD in Europe

Author: Asakawa, K. INSEAD Area: Organisational Behaviour Series: Working Paper ; 95/90/OB Publisher: Fontainebleau : INSEAD, 1995.Language: EnglishDescription: 23 p.Type of document: INSEAD Working Paper Online Access: Click here Abstract: By examining how external/internal linkages held by overseas RandD labs affect autonomy-control tension within MNCs, managerial dilemnas pertinent to international RandD management will be discussed, especially in the context of internationalization of Japanese RandD in Europe. RandD is liable to be affected by high autonomy-control tension due to contervailing institutional forces at the functional level (research/corporate) and the geographical level (host country/home country). The external linkages an overseas RandD lab develops tend to increase the expected degree of local autonomy vis-à-vis the parent. The external linkages tend to increase the need for internal control on the part of the parent, especially when such sensitive issues as intellectual property rights and research initiatives are involved. Managers use internal linkages as a condition based on which local autonomy can be granted
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By examining how external/internal linkages held by overseas RandD labs affect autonomy-control tension within MNCs, managerial dilemnas pertinent to international RandD management will be discussed, especially in the context of internationalization of Japanese RandD in Europe. RandD is liable to be affected by high autonomy-control tension due to contervailing institutional forces at the functional level (research/corporate) and the geographical level (host country/home country). The external linkages an overseas RandD lab develops tend to increase the expected degree of local autonomy vis-à-vis the parent. The external linkages tend to increase the need for internal control on the part of the parent, especially when such sensitive issues as intellectual property rights and research initiatives are involved. Managers use internal linkages as a condition based on which local autonomy can be granted

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