The influence of coordination mechanisms on new product development in MNC subsidiaries

This paper investigates the relationship between [MNC] coordination mechanisms and subsidiary new product development [NPD] activities. We focus on two essentially different coordination mechanisms, internal markets and global decision-making autonomy, and argue that both mechanisms are likely to in...

Descripción completa

Detalles Bibliográficos
Autor: Boehe, Dirk Michael
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2010
País:Brasil
Institución:Associação Nacional de Pós-Graduação e Pesquisa em Administração (ANPAD)
Repositorio:BAR - Brazilian Administration Review
Idioma:inglés
OAI Identifier:oai:ojs3.bar.anpad.org.br:article/115
Acceso en línea:https://bar.anpad.org.br/index.php/bar/article/view/115
Access Level:acceso abierto
Palabra clave:multinational corporations [MNC]
global strategy
subsidiary coordination
internal markets
outsourcing
Descripción
Sumario:This paper investigates the relationship between [MNC] coordination mechanisms and subsidiary new product development [NPD] activities. We focus on two essentially different coordination mechanisms, internal markets and global decision-making autonomy, and argue that both mechanisms are likely to increase a subsidiary's exposure to market forces which, in turn, provides different kinds of incentives for a subsidiary's in-house NPD and NPD outsourcing. We tested our hypotheses using structural equations modeling. The results suggest that internal markets have a positive effect on NPD outsourcing while global autonomy has a positive effect on inhouse NPD. Thus, this study contributes to integrating the internal market construct with the coordination mechanism stream of literature.