Innovation and Institutional Embeddedness of Multinational Companies
Show Less

Innovation and Institutional Embeddedness of Multinational Companies

  • New Horizons in International Business series

Edited by Martin Heidenreich

Multinational companies are crucial actors in a global knowledge-based economy, combining the advantages of global and locally coordinated production and innovation strategies with specific regional and national factors. This book questions how MNCs can best exploit institutionally embedded knowledge, explores the utilization of external institutionally embedded knowledge in corporate innovation processes, and addresses the challenges of embeddedness.
Buy Book in Print
Show Summary Details

Chapter 2: Regional Embeddedness of Multinational Companies and their Limits: A Typology

Martin Heidenreich and Jannika Mattes

Extract

2. Regional embeddedness of multinational companies and their limits: a typology1 Martin Heidenreich and Jannika Mattes Multinational companies (MNCs) are important protagonists for the generation and international transfer of technological knowledge. They are responsible for most global R&D expenditure2 and provide important channels through which technological competences can be transferred across national as well as cultural and institutional borders (OECD, 2009; Dunning and Lundan, 2009). MNCs are analysed as global networks in which internationally distributed subsidiaries produce innovations in a ‘more distributed and open architecture of knowledge production and application’ (Gerybadze, 2004: 123). Complementary to this international dimension of knowledge production, other authors stress the territorial embeddedness of MNCs that do not act as ‘footloose companies’ but are able to exploit specific regional competences due to the embeddedness of their subsidiaries ‘in different local networks’ (Andersson et al., 2002: 979). Cantwell and Iammarino (2003), for example, show that MNCs spread their competence base by exploiting diversified technological competences in spatially distinct institutional and organizational settings. Taking the example of US-based semiconductor firms, Phene and Almeida (2008) demonstrate that the external availability of competences and the capability of subsidiaries to exploit them are essential for the innovativeness of a company. MNCs are therefore geographically unbound and in principle transnational networks of knowledge production, while at the same time their competences are based on learning processes and knowledge exchange in specific local contexts (Kristensen and Zeitlin, 2005). In this sense an MNC uses and combines two types of learning that are...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.


Further information

or login to access all content.