BU491 Chapter 5: Chapter 5 – Creating Worldwide Innovation and Learning
Chapter 5 – Creating Worldwide Innovation and Learning
Current challenge facing MNE: how to capture, develop, leverage, and exploit knowledge to support
effective worldwide innovation and learning
Classic Innovation Models
Center-for-global – opportunity sensed in home country, developed using centralized resources,
implemented via global rollout
Local-for-local – subsidiary focused opportunity sensing, innovation development and
implementation
Three Important capabilities that are key to managing the Center-for-Global process
1.) gaining the input of subsidiaries into centralized activities – putting multiple linkages
between headquarters and overseas subsidiaries, this can offer subsidiary greater access to and
environment in centralized decision and tasks while giving headquarters a better understanding
of country level of needs and opportunities
2.) ensuring that all functional tasks are linked to market needs – making sure that
manufacturing and marketing are not sheltered from the constraints and demands felt by
managers on the front line of the operations
3.) integrating value chain functions by managing the transfer of responsibilities across
development, production, and marketing – having a researcher engineer be in all parts of the
development, production, and marketing stages, the employee transitions to the next
department as the major project moves on
Marking Local Innovations Efficient – local to local innovations
1.) Empowering local management – giving local management the assets and resources of
creating local for local innovations
2.) Establish effective mechanism for linking local managers to corporate decision-making
processes – having close connection with the corporate headquarters, or by assigning
expatriates
3.) Integrating Subsidiary Functions - having strong cross functional integration within each
national operation
Transnational Innovation Processes: Locally Leveraged, Globally Linked
Locally leveraged – Subsidiaries knowledge and capabilities shared via worldwide to all
subsidiaries and parent company, e.g. Indian innovation in low cost phone leveraged in
developing countries worldwide, it worked just as well in other developing countries
Globally Linked – Worldwide resources and capabilities pooled to jointly create and develop
innovation, e.g. using resources from one entity, market intelligence in another, and specialized
expertise in a third entity to make a new product, e.g. P&G liquid laundry
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Chapter 5 creating worldwide innovation and learning. Current challenge facing mne: how to capture, develop, leverage, and exploit knowledge to support effective worldwide innovation and learning. Center-for-global opportunity sensed in home country, developed using centralized resources, implemented via global rollout. Local-for-local subsidiary focused opportunity sensing, innovation development and implementation. Three important capabilities that are key to managing the center-for-global process. 2. ) ensuring that all functional tasks are linked to market needs making sure that manufacturing and marketing are not sheltered from the constraints and demands felt by managers on the front line of the operations. Marking local innovations efficient local to local innovations. Empowering local management giving local management the assets and resources of creating local for local innovations. Establish effective mechanism for linking local managers to corporate decision-making processes having close connection with the corporate headquarters, or by assigning expatriates. Integrating subsidiary functions - having strong cross functional integration within each national operation.
