Coordination structures and innovative performance in global R&D labs
Canadian Journal of Administrative Sciences , Volume 19 - Issue 1 p. 57- 75
Recently, multinational corporations have been globalizing their research and development (R&D) activities as a way to harness and leverage the scientific and technological capabilities residing in their subsidiary labs around the world and to tap into the knowledge base of overseas locations. Prior research suggests that proper coordination and control mechanisms are critical for the realization of this goal. An empirical study was undertaken to ascertain the extent to which four coordination and control mechanisms-autonomy, socialization, formalization, and communication-enhance the innovative capabilities of multinationals. R&D executives from 79 research facilities of 27 North American, European, and Japanese multinational corporations participated in this study. The results from multivariate regression and factor analysis indicate that innovative capability is influenced by the level of autonomy of the labs, the extent of socialization, and the effectiveness of in-person communication between the HQ and subsidiary labs.