GAO_Chpt 5 Notes_Creating Worldwide Innovation and Learning

GAO_Chpt 5 Notes_Creating Worldwide Innovation and Learning...

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Chapter 5: Creating Worldwide Innovation and Learning: Exploiting Cross-Border Knowledge Management Introduction Conclusion: As MNEs have found ways to match one another in the more familiar attributes of global scale efficiency and local responsiveness , the leading-edge competitive battles have shifted to companies’ ability to link and leverage their resources to capture advantage through worldwide learning. Reason: In today’s competitive environment, no company can assume that it can accumulate world-class knowledge and expertise by focusing only on its home-country environment , or that it can succeed just by tweaking 调 调 its domestic product line . Qualcomm is using its worldwide presence to maintain and expand its innovative lead. R&D must become the sensors of new market trends or technological developments , they must e able to attract scare talent and expertise , and they must be able to act collectively with the company and other offshore units to exploit the resulting innovation worldwide, regardless of where they originated 调调调调 . Transnational Innovation: Central and Local Models Center-for-global innovation model: the new opportunity was usually sensed in the home country; centralized resources and capabilities in the main R&D center; impleme ntation involved driving innovation through subsidiaries Local-for-local innovation model: relies on subsidiary-based knowledge development; subsidiaries use their own resources and capabilities to create innovative responses & then implemented in the local market [Unilever] Two new transnational innovation processes Locally leveraged innovation: ensuring that the special resources and capabilities of each national subsidiary are available not only to that local entity but also to other MNE unites worldwide Example: Best Buy: US based electronics retailer Best Buy acquired a share in the 2000-store network of European mobile phone retailer Carphone Warehouse treating its new European operation as the source of that missing expertise (selling mobile phones) learn about selling mobile phones and incorporate a more intimate store-within-a-store expertise double its share of the mobile phone sales in the US and now the approach is now being rolled out worldwide Globally linked innovation: pools the resources and capabilities of many different units (both at parent company and the subsidiary level) to create and manage an activity jointly. It allows the company to take market intelligence developed in one part of the organization, perhaps link it to specialized expertise located in a second entity and a scarce resource in a third, an then eventually diffuse the new product or proposal worldwide Example: P&G launched an improved liquid laundry detergent, which drew on the diverse technological capabilities it had developed in Europe, Japan and the Limitations of above processes The greatest risk of center-for-global innovation is market insensitivity and the accompanying resistance of local
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  • Spring '16
  • BrianHilton
  • Technology transfer, new transnational innovation, Center-for-global innovation model, source new ideas, Local-for-local innovation model

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