Managing Global Innovation - PowerPoint PPT Presentation

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Managing Global Innovation

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Managing Global Innovation Strategies for Worldwide Innovation Strategies for Worldwide Innovation Factors Driving R&D Internationalization Factors Affecting R&D ... – PowerPoint PPT presentation

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Title: Managing Global Innovation


1
Managing Global Innovation
2
Strategies for Worldwide Innovation
Afuah (2003)
Market information needs
Multidomestic Unilever Transnational Caterpillar
International PG Global Intel
High
Low
Low
High
Technological information needs
3
Strategies for Worldwide Innovation
Emphasis Description
Multinational (multidomestic) Local responsiveness and differentiation Allows foreign subsidiaries to operate nearly autonomously the firm can quickly sense and respond to local needs
Global Global efficiency Global activities are closely managed through central control from the headquarter. The firm capitalizes on economies from standard product design, global-scale manufacturing, and centralized control of worldwide operations.
International Rapid deployment worldwide Foreign subsidiaries operate autonomously but are critically dependent on the headquarter for new processes, new products, and know-how.
Transnational Global efficiency, local responsiveness, high innovativeness Integrate global activities through close interdependence and mutual cooperation between headquarter and foreign subsidiaries.
4
Factors Driving RD Internationalization
Boutellier et al. (2000)
5
Factors Affecting RD Internationalization
6
Five Organizational Concepts of international RD
Organization
c) Polycentric Decentralized RD
e) Integrated RD Network
Dispersion of internal competencies knowledge
bases
d) RD Hub Model
a) Ethnocentric Centralized RD
b) Geocentric Centralized RD
Low
Competition
Cooperation
Degree of cooperation between RD sites
7
Different International RD Organizations
Configuration Organizational structure Behavioral orientation
a. Ethnocentric centralized RD Centralized RD National inward orientation
b. Geocentric centralized RD Centralized RD International external orientation
c. Polycentric decentralized RD Highly dispersed RD, weak center Competition among independent RD units
d. RD hub model Dispersed RD, strong center Supportive role of foreign RD units
e. Integrated RD network Highly dispersed RD, several competence centers Synergetic integration of international RD units
8
Different International RD Organizations
Configuration Pros Cons
Ethnocentric centralized RD Protected core technologies High efficiency Low RD cost (scale specialization effects) Short cycle times Low sensitivity for local markets Danger of missing external technology Not-Invented-Here syndromes Tendency toward rigid organization
Geocentric centralized RD High sensitivity for local market technological trends Efficiency due to centralization Cost - efficient RD internationalization Danger to neglect systematic internationalization Local content restrictions local market specifications insufficiently considered
Polycentric decentralized RD Strong sensitivity for local markets Adaptation to local environment Usage of local resources Inefficiency parallel development No technological focus Problems with critical mass
9
Different International RD Organizations
Configuration Pros Cons
RD hub model High efficiency due to coordination of RD Avoidance of redundant RD Exploitation of all available strengths Realization of synergies (quick recognition of local demand the sustaining integration of global RD input) High costs of coordination and time Danger of oppressing creativity flexibility through central directives
Integrated RD network Coupling of specialization synergy effects Global before local efficiency Organizational learning across many locations Exploitation refining of local strengths High coordination costs Complexity of institutional rules and decision processes
10
Trends in Organizing International RD
High
c) Polycentric Decentralized RD
e) Integrated RD Network
4
Dispersion of internal competencies knowledge
bases
d) RD Hub Model
3
2
2
a) Ethnocentric Centralized RD
b) Geocentric Centralized RD
1
Low
Competition
Cooperation
Degree of cooperation between RD sites
11
THE END
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