The third issue of Global Strategy Journal in 2019 is out. Here you can find a set of insightful articles on innovation. We hope you enjoy them.
Alvaro Cuervo-Cazurra, Ram Mudambi, and Torben Pedersen
Co-Editors of Global Strategy Journal
Rishikesha T. Krishnan, Shameen Prashantham
Research Summary: Most Indian organizations operate within the technological frontier and focus on lowering costs, sometimes through frugal innovation or jugaad, to meet the constrained affordability of Indian consumers. Process and organizational innovations abound more than product or supply chain management innovations. Foreign multinationals, the major contributor of patents in India, appear to be uninhibited by the current state of the IP protection regime, although this has deficiencies in enforcement. A new noteworthy trend is the rise of start©\ups that hold promise as a source of product and business model innovations. Our analysis of the (limited) extant literature indicates a general dearth of empirical research on this topic relative to work on China; as such, there is scope for further research.
Pooja Thakur©\Wernz, Shantala Samant
Research Summary: This study examines the impact of international experience (IE) on innovation performance (IP) in the context of emerging economy multinational enterprises (EMNEs). EMNE internationalization is often driven by strategic asset©\seeking behavior to improve their knowledge base. But, does internationalization lead to more innovation for these EMNEs? Drawing on organizational learning theory, we find a positive relationship; however, the IE¨CIP curve is not linear, instead it follows an S¨Cshaped curve. We also introduce the moderating role of the difference in the direct and indirect learning rate, as well as the knowledge distance between an EMNE¡¯s home and host countries, to the IE¨CIP relationship. Data on 161 Indian biopharmaceutical firms, of which 64 are EMNEs, from 1997 to 2013 were used to empirically test our hypotheses.
Sharon F. Matusik, Michael B. Heeley, Jos¨¦ Ernesto Amor¨®s
Research Summary: Emerging economies increasingly try to stimulate innovation as a path toward economic development. One side effect of this is that foreign ownership of innovation in these contexts is increasing. This raises the question of how local vs. foreign ownership affects whether spillovers from innovation stay in the focal country or occur outside of it. Based on data from 1995 to 2014 across 35 emerging economies, we find that when ownership of an invention is local, spillovers are more likely to stay local. We also examine how the relationship between foreign ownership and spillovers is moderated by the stickiness of knowledge associated with the invention (relevant country©\level knowledge stocks in the host country, applied orientation, and scope). We conclude with a discussion of theory and policy implications.
Andrew Parker, Esther Tippmann, Renate Kratochvil
Research Summary: The fundamental challenge of problem solving is synthesizing diverse knowledge for solution development. This article addresses the trade©\off between knowledge diversity, that is, approaching the most relevant individual to maximize the likelihood that he/she possesses diverse knowledge and the ability to access, that is, recognize and assimilate this knowledge. We examine this trade©\off in relation to managers in subsidiaries of multinational corporations (MNCs) and two types of diverse knowledge¡ªnovel knowledge and specialist expertise. We use a network mobilization perspective and arguments on network range within and across organizational boundaries, testing our hypotheses on a dataset of 838 ties from 120 managers leading problem©\solving projects. Our study offers implications for the knowledge©\based view of the MNC as well as the problem©\solving perspective in strategy.
Research summary: In order to identify the impact of offshoring on knowledge©\intensive services (KIS), the activities related to the transfer and co©\creation of knowledge in the service production process are studied in this paper. The concepts of activity systems and activity structures from practice theory are used to analyze these activities. A qualitative case study of multiple offshored KIS shows that offshoring changes activity systems and structures within the production process. Activities related to the transfer of knowledge are reduced while the co©\creation of knowledge remains evident in the process. As a result, KIS become more modularized and less customized, evidencing changed KIS characteristics. The paper adds to service offshoring and international service management literature and extends practice theory.
Professor of Global Strategy, Northeastern University
Co-editor, Global Strategy Journal
Frugality based advantage, Long Range Planning
Clarifying the relationships between institutions and global strategy, Global Strategy Journal
Pro-market institutions and global strategy: The pendulum of pro-market reforms and reversals, Journal of International Business Studies
State ownership and international expansion: The S©\Curve relationship, Global Strategy Journal
Mexican Multinationals: Building Multinationals in Emerging Markets. Cambridge University Press
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