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Managing innovations in the transnational corporation

Author: Ghoshal, Sumantra ; Bartlett, Christopher A.INSEAD Area: Strategy In: Managing the global firm - Bartlett, Christopher A.;Doz, Yves L.;He - 1990 - INSEAD Book Language: EnglishDescription: p. 215-255.Type of document: INSEAD ChapterNote: Please ask the Library for this chapter.Abstract: This chapter analyses how a transnational organizational model can lead to a much richer and more effective innovation process, by explicitly differentiating the roles and responsibilities of different national subsidiaries in worldwide firms. The paper describes how companies can develop multiple simultaneous processes of innovation by linking and leveraging existing organizational assets and capabilities. Drawing from the illustrations of numerous innovations in the nine MNCs they studied, the authors conclude that it is not necessarily the amount of money expended on RandD or other sources of innovation that is the key success factor for MNCs, but the ability to develop an organizational capability that allows the four basic processes of innovation they describe to flourish and coexist.
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This chapter analyses how a transnational organizational model can lead to a much richer and more effective innovation process, by explicitly differentiating the roles and responsibilities of different national subsidiaries in worldwide firms. The paper describes how companies can develop multiple simultaneous processes of innovation by linking and leveraging existing organizational assets and capabilities. Drawing from the illustrations of numerous innovations in the nine MNCs they studied, the authors conclude that it is not necessarily the amount of money expended on RandD or other sources of innovation that is the key success factor for MNCs, but the ability to develop an organizational capability that allows the four basic processes of innovation they describe to flourish and coexist.

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