Paper info

Innovation in a multinational enterprise’s subsidiary – role of headquarters and network

Adam Dymitrowski and Milena Ratajczak-Mrozek

The paper was published at the 33rd IMP-conference in Kuala Lumpur, Malaysia in 2017.

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The aim of this paper is to identify how innovation is created and transferred to subsidiary operating in a network dominated by headquarters (HQ), while at the same time taking advantage of external relationships. To analyse the interdependencies affecting innovation, resulting from relationships at the HQ, subsidiaries and external actors level, we apply the IMP idea of developing, producing and using innovation. Using case study analysis subsidiaries of four multinational enterprises operating in different industries and markets are examined. The study sheds a new light on the phenomenon of subsidiary’s innovation process taking place in a network dominated by HQ and helps to identify roles played by different actors and their potential contribution. Results confirm the crucial role of HQ. It provides not only financing and necessary information, but more importantly it embeds processes conducted in a subsidiary into MNE’s network. Our findings show that subsidiaries play an equally important role in the innovation process as HQ. Its role is not merely submissive, but concentrates on actively shaping the innovation through the whole process.