The influence of coordination mechanisms on new product development in MNC subsidiaries



Título del documento: The influence of coordination mechanisms on new product development in MNC subsidiaries
Revista: BAR - Brazilian Administration Review
Base de datos:
Número de sistema: 000552843
ISSN: 1807-7692
Autores: 1
Instituciones: 1Insper Instituto de Ensino e Pesquisa, Sao Paulo. Brasil
Año:
Periodo: Ene-Mar
Volumen: 7
Número: 1
Paginación: 79-97
País: Brasil
Idioma: Inglés
Tipo de documento: Artículo
Resumen en inglés This paper investigates the relationship between MNC coordination mechanisms and subsidiary new product development NPD activities. We focus on two essentially different coordination mechanisms, internal markets and global decision-making autonomy, and argue that both mechanisms are likely to increase a subsidiary's exposure to market forces which, in turn, provides different kinds of incentives for a subsidiary's in-house NPD and NPD outsourcing. We tested our hypotheses using structural equations modeling. The results suggest that internal markets have a positive effect on NPD outsourcing while global autonomy has a positive effect on inhouse NPD. Thus, this study contributes to integrating the internal market construct with the coordination mechanism stream of literature.
Disciplinas: Administración y contaduría
Palabras clave: Administración de instituciones
Keyword: Multinational corporations [MNC],
Global strategy,
Subsidiary coordination,
Internal markets,
Outsourcing,
Management of institutions
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