AIB 2012 Conference Proceedings - Academy of International ...

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global oil and gas firms, highlight the variation in geographic focus across the value chain of the vertically
integrated oil and gas MNEs and find trends including movement away from home location. We also find no
significant correlation between multi-nationality and performance for this industry. We suggest the explanatory
variables of MNE performance are more complex than just as degrees of multi-nationality and believe a review
of prior endowments, intra-firm competition and industry specific factors must augment theories based on Firm-
Specific Advantages. This study does, however, reveal a correlation between multi-nationality and revenue,
suggesting that, in this industry at least, size does matter. (For more information, please contact: Simon C.
Collinson, Reading University, United Kingdom: s.collinson@reading.ac.uk)
Embeddedness for Global Innovation: An Investigation of Differentiated Ties at Overseas R&D Subsidiaries
Kazuhiro Asakawa, Keio University
Tina Claudia Ambos, Johannes Kepler University
Björn Ambos, Vienna University of Economics and Business
This papers aims to shed light on the question how embeddedness impacts the potential of international R&D
subsidiaries to create innovations for the global – rather than the local – market. We examine the kinds
(external vs. internal) and the locus (local vs. global) of ties that international R&D subsidiaries maintain and
test their relationship with the unit's global innovation potential drawing on a sample of 99 overseas R&D
subsidiaries belonging to Japanese multinational corporations. Our results reveal that certain ties enable
overseas R&D subsidiaries to pursue innovation for global markets more than others: Collaborating with
overseas business organizations, with other intra-firm subsidiaries, and certain intervention by headquarters are
positively related to subsidiary innovation for global markets; whereas ties with local business organizations
turns out to be negatively associated with subsidiary innovation for global markets. Our findings partly reconfirm
the established wisdom on subsidiary embeddedness and innovation but also challenge the value of host market
embeddedness vis-à-vis other forms of ties. (For more information, please contact: Tina Claudia Ambos,
Johannes Kepler University, Austria: tina.ambos@jku.at)
Global Networks in the High-Tech Industry: Structural Holes and R&D Performance
Susanne Johanna Scherer, WU Vienna
Gregor Binder, WU Vienna
Mario Glowik, Karol Adamiecki University of Economics in Katowice
This paper examines the influence of structural holes and closed networks on the performance of individual
firms' networks within the High-Tech Industry. Specifically, it argues that having closed networks is more
favourable for participating firms. Moreover, the work intends to theoretically discuss this matter in order to
allow gaining insights into the characteristics, emergence, and potential benefits of structural holes.
Furthermore, the boundary conditions and contingencies are studied and the opposing network theory, viz.
network closure, is presented. Despite ambiguous opinions in the available literature, we test the hypothesis
that structural holes will hinder the performance of networking firms in the sample of R&D networks in the
consumer electronics industry. The final sample of this longitudinal research setting included a period of more
than ten years with 112 observations. Conducting random-effects generalized least squares (GLS) regressions,
revealed that closed networks are increasing performance in R&D networks whereas structural holes are
weakening performance. This outcome suggests that a dense network with many redundant ties is favourable
and desirable. Interestingly, the prevalence of mainly collectivistic oriented players in the industry suggests that
this specific cultural influence impacts the outcome accordingly. (For more information, please contact: Susanne
Johanna Scherer, WU Vienna, Austria: susanne.scherer@wu.ac.at)
AIB 2012 Conference Proceedings
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