Tim Swift

Multinational Enterprises and the Geographical Clustering of Innovation

Research on the geographic clustering of economic activity dates back to the early twentieth century. It is recognized that in spite of advances in transportation and communications, clustering remains most critical, and is consequently prevalent, in knowledge-intensive fields. Multinational enterprises (MNEs) that increasingly base their value creation and competitive advantage on knowledge-intensive activities are key participants in clusters, affecting both the nature and intertemporal evolution of local innovative activities. However, the role of MNEs in clusters remains under-researched. This paper traces the origins of research on geographic clusters, identifies the seminal contributions focusing on the role of MNEs, discusses potential problems inherent to this area of inquiry and develops an organizing framework for new research.

R&D EXPENDITURE VOLATILITY AND FIRM PERFORMANCE: ORGANIZATIONAL AND ENVIRONMENTAL CONTEXTS

A common view is that organizational slack diminishes firm performance by providing management the opportunity to invest in pet projects or to engage in empire-building. An opposing perspective argues that organizational slack enhances innovation by enabling firms to invest in promising new R&D projects as soon as they are discovered, or to maintain R&D during operating shortfalls. In this paper, we identify empirically a context within which organizational slack enhances firm performance. Recent research indicates that firms that proactively manage their R&D functions by frequently and substantially modifying R&D expenditure over time are superior performers. I find that higher levels of organizational slack increase the positive relationship between R&D expenditure volatility and firm performance. Evidence presented herein suggests that firms with superior access to discretionary funds held as slack use these resources to fund nascent R&D projects and to mitigate uncertainty, thus driving more commercially valuable innovation. This is one of the few studies providing empirical evidence of the practical value of organizational slack.

Technological clusters and multinational enterprise R&D strategy

Economic clusters are global centers of excellence in particular industries or technologies. They consist of interlinked companies, specialized suppliers, support services, and relevant institutional actors in a specific field. Multinational enterprise (MNE) R&D strategy with regard to economic clusters is impacted by two contradictory forces. MNEs locating their R&D activities within economic clusters can benefit by availing of specialized resources and by capturing location-specific tacit knowledge. However, the risks of knowledge leakage can lead to adverse selection whereby clusters attract underperforming firms that have much to gain and little to lose. Further, general disagreement exists on the measurement of performance within economic clusters. We review the literature, assess the evidence, and suggest areas for productive future research.

Business leaders speak out: their real strategic problems

Purpose – Many observers agree that the recommendations from academic research are not followed by real world organizations, and that business researchers rarely consult practitioners when formulating research questions. Calls are increasing to make management research more relevant for business managers. This paper aims to seek to capitalize upon this opportunity by going straight to managers on the front line and asking them about their most pressing problems.Design/methodology/approach – The authors surveyed over 350 Chief Executive Officers of large, medium and small‐cap US firms. The authors asked these executives to describe the most important strategic problem facing their firms, to identify the fundamental source of the problem, and to identify the best response to this problem.Findings – Executives tell us that their most common strategic problems relate to threats from new technology, and new competitors. Further, respondents believe that the most important threats originate outside the firm.Pra...