Business Commons^™

Subsidiary Development Of New Technologies: Managing Technological Changes In Multinational And Geographic Space, Anupama Phene, Stephen Tallman

Management Faculty Publications

This study explores the co-evolution of the subsidiaries of the multinational firm with their global organizations and geographic locations. We examine when and how subsidiaries make sense of and respond to technological changes in these environments to expand their scope and develop new technologies. Using the concept of local search, we propose that technological changes in a subsidiary’s parent firm and host country, in areas specific to the subsidiary’s expertise and at the broad industry level, have differential effects on subsidiary development of new technologies. We further propose that subsidiary innovative capability acts as a moderator, enabling subsidiaries to respond …