Kazuhiro Asakawa

Organizational tension in international R&D management: the case of Japanese firms

Abstract Internationalization of R&D has unleashed a considerable degree of tension within multinational corporations. This paper explores the nature of such a tension in the Japanese multinational firms. At first glance, the most obvious tension appeared to be on the autonomy and control issue between the headquarters and overseas laboratories. However, taking perception gaps as the primary manifestation of organizational tension within a firm, we learned that the tension appears to be more salient in information-sharing issues than in autonomy-control issues, and that the local side seems more dissatisfied with the current level of information sharing and granted autonomy than the parent side. Inter-industry and inter-laboratory differences regarding such findings were also examined. Qualitative data revealed that the nature of organizational tension actually evolves along the differing stages (i.e. dis-integration and re-integration) of R&D internationalization. Theoretical implications for network and information-processing perspectives were also discussed in the context of the dynamics of organizational tension.

Evolving headquarters-subsidiary dynamics in international R&D: The case of Japanese multinationals

The paper identifies the evolving nature of headquarters-subsidiary relations during the whole process of R&D internationalization. In-depth data on five Japanese multinationals revealed that the role of overseas laboratories actually evolved over time, from the ‘starter’ to the ‘innovator’ and then to the ‘contributor’. Such a shift in role of overseas laboratories affected the nature of headquarters-subsidiary relationship accordingly. ‘Semi-connected freedom’ was identified as an optimal condition for the overseas laboratories to reconcile the two competing pressures: need for local autonomy and need for internal information connectivity. Various managerial steps were suggested for the laboratories to reach that state: increase in process linkage, active broker’s role, short-term socialization, and project-level socialization. Some practical and theoretical implications were drawn from this research, and future research direction was suggested.

External-internal linkages and overseas autonomy-control tension: the management dilemma of the Japanese R&D in Europe

By examining how external/internal linkages held by overseas R&D labs affect autonomy-control tension within multinational corporations (MNCs), managerial dilemmas pertinent to international R&D management are discussed, especially in the context of internationalization of Japanese R&D in Europe. R&D is liable to be affected by high autonomy-control tension due to countervailing institutional forces at the functional level (research/corporate) and the geographical level (host country/home country). The external linkages an overseas R&D lab develops tend to increase the expected degree of local autonomy vis-a-vis the parent. The external linkages tend to increase the need for internal control on the part of the parent, especially when such sensitive issues as intellectual property rights and research initiatives are involved. Managers use internal linkages as a condition based on which local autonomy can be granted. Similarly, a high degree of internal linkages tends to decrease the difficulty of internal control and would even allow for some potential increase in local autonomy. An alternative multinational linkage strategy becomes necessary for the Japanese MNCs in the era of global R&D management in which the conventional social/cultural control mechanism may break down. This paper attempts to provide a basic framework which enables the association of such differences in linkage patterns with autonomy-control tension in a systematic way so that some new insight would be obtained regarding this classic yet unresolved tension.

Firms' Open Innovation Policies, Laboratories' External Collaborations, and Laboratories' R&D Performance

The value of the open innovation approach is now widely recognized, and the practice has been extensively researched, but still very little is known about the relative impact of firm-level and laboratory-level open innovation policies and practices on RD it shows how an open innovation policy can have a positive and significant effect on collaborations between a laboratory and local universities or business organizations. The results also show how an open innovation policy can contribute to the laboratorys R&D performance by facilitating external collaborations by the laboratories. It demonstrates how these factors affect R&D performance in different ways, depending on the type of R&D tasks. Our findings suggest several theoretical and practical implications in the field of R&D management.

Partnering with the Unfamiliar: Lessons from the Case of Renault and Nissan

Companies are increasingly forming alliances with unfamiliar, often even unlikely, partners in the search for greater geographic coverage and complementary skills. How can such odd couples effectively co-operate in practice? They can – if they put the formation of a successful alliance at the centre of their strategies.

Internal embeddedness, geographic distance, and global knowledge sourcing by overseas subsidiaries

We investigate determinants of global knowledge sourcing of overseas R&D subsidiaries, shedding light on vertical cross-border embeddedness within firms. Drawing on the paradox of embeddedness perspective, which assumes that embeddedness may facilitate or hinder knowledge transfer, we examine the extent to which different types of internal vertical embeddedness – administrative versus knowledge – facilitate global knowledge sourcing. We find that vertical administrative embeddedness inhibits global knowledge sourcing, while vertical knowledge embeddedness promotes it. We also find differing moderating effects of geographic distance between headquarters and its subsidiaries on the association between vertical embeddedness and global knowledge sourcing.ResumeMettant en lumière l’enchâssement vertical transfrontalier au sein des entreprises, nous étudions les déterminants de l’approvisionnement en connaissances globales des filiales de recherche-développement à l’étranger. S’appuyant sur le paradoxe de la perspective de l’enchâssement, qui suppose que l’enchâssement peut faciliter ou entraver le transfert de connaissances, nous examinons la mesure dans laquelle différents types d’enchâssements verticaux internes – administratifs vs de connaissances – facilitent l’approvisionnement en connaissances globales. Nous constatons que l’enchâssement vertical administratif inhibe l’approvisionnement en connaissances globales, alors que l’enchâssement vertical de connaissances assure sa promotion. Nous constatons également des effets modérateurs différents de la distance géographique entre le siège et ses filiales sur l’association entre l’enchâssement vertical et l’approvisionnement en connaissances globales.ResumenInvestigamos los determinantes del aprovisionamiento de conocimiento global de las filiales de I+D en el extranjero, arrojando luz sobre la integración vertical transfronteriza dentro de las empresas. Con base en la paradoja de la perspectiva de integración, la cual asume que la integración puede facilitar o dificultar la transferencia de conocimiento, examinamos hasta qué punto difieren los tipos de arraigamiento vertical interna – administrativo versus conocimiento – facilita el aprovisionamiento de conocimiento global. Encontramos el arraigamiento administrativo vertical inhibe el aprovisionamiento de conocimiento global, mientras que el arraigamiento vertical de conocimiento lo promueve. Encontramos también distintos efectos moderadores de la distancia geográfica entre la casa matriz y sus filiales en la asociación entre la integración vertical y el aprovisionamiento de conocimiento global.ResumoNós investigamos os determinantes da obtenção de conhecimento global de subsidiárias de R&D no exterior, esclarecendo a integração vertical transfronteiriça dentro das empresas. Com base no paradoxo da perspectiva de incorporação, que assume que a incorporação pode facilitar ou dificultar a transferência de conhecimento, examinamos até que ponto diferentes tipos de incorporação interna vertical - administrativa vs. conhecimento - facilitam o aprofundamento global de conhecimento. Concluímos que a incorporação administrativa vertical inibe a obtenção de conhecimento global, enquanto que a incorporação vertical do conhecimento o promove. Também encontramos diferentes efeitos moderadores da distância geográfica entre a sede e suas subsidiárias na associação entre incorporação vertical e obtenção de conhecimento global.概要我们调查海外研发子公司全球知识采购的决定因素,揭示公司内部的垂直跨境嵌入。借鉴嵌入视角悖论,即假设嵌入能有助于或阻碍知识转移,我们研究不同类型的内部垂直嵌入 ‒ 行政与知识 ‒ 促进全球知识采购的程度。我们发现垂直行政嵌入阻碍全球知识采购,而垂直知识嵌入促进它。我们还发现总部与其子公司之间的地理距离对垂直嵌入与全球知识采购之间的关联有不同的调节作用。

Transition in Japan’s Biotechnology Sector: Institutional Organizational Co-Evolution

Research and technological standards vary from nation to nation. The creating, diffusing, and leveraging of intellectual capital is closely linked to a nation’s innovation system and the capabilities of organizations (such as universities, governments, research institutes, and ventures) within the system (Freeman, 1987; Hollingsworth, 1996; Lundvall, 1992; Nelson, 1993; Casper et al., 1999). Because each system is deeply rooted in its own historical and social patterns (Freeman, 1987; Lundvall, 1992), changing one is obviously not easy. However, a radical technological breakthrough may trigger change in the whole innovation system

Managing R&D Innovation in India and China

Growing number of foreign firms have been launching their R&D operations in China and India. However, in spite of such growing trend of foreign R&D investment in Asia, academic research in this field has largely remained within the domain of Western (and Japanese) MNCs. It is only recently that the interest in R&D investment in China and India has grown. The key research question that we address in this article is the opportunities and dilemmas facing MNCs in managing their R&D in China and India. In particular, we investigate the degree to which opportunities and challenges are different in these countries from those of the Western counterparts. After briefly summarizing some of the conventional wisdom of international R&D management in general, we turn our attention to the uniqueness of China and India as the host countries of R&D localization. We suggest that MNCs should not forget the conventional way of managing their innovative R&D policies but learn and combine their approaches, styles of management and their capabilities in Asia (particularly in India and China). We propose that there is no either/or solution but an orchestrated strategy that might bridge the gap between the different strategies that MNCs are focusing today, which might affect their own rule of the game