Using multi-hub structures for international R&D: Organizational inertia and the challenges of implementation

Criscuolo, Paola and Narula, Rajneesh (2005). Using multi-hub structures for international R&D: Organizational inertia and the challenges of implementation. UNU-MERIT Research Memoranda. UNU-MERIT.

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  • Sub-type Working paper
    Author Criscuolo, Paola
    Narula, Rajneesh
    Title Using multi-hub structures for international R&D: Organizational inertia and the challenges of implementation
    Series Title UNU-MERIT Research Memoranda
    Volume/Issue No. 25
    Publication Date 2005
    Publisher UNU-MERIT
    Language eng
    Abstract Over the last decade or so, multinational enterprises (MNEs) have shifted from centralised hub structures to multi-hub structures. While these new structures provide greater potential for cross-fertilization of technologies and access to locationspecific competences, promoting effective knowledge transfer within an MNE ' especially in their R&D activities - presents significant managerial challenges. Using evidence collected on the R&D activities of MNEs in the pharmaceutical sector, this paper analyses the challenges associated with complexities of promoting and integrating knowledge flows in the face of inter-unit geographical, organizational and technological distance. MNEs are faced with organizational inertia that hinders efficient lateral communication and inter-unit knowledge transfer, and the evidence suggests that while socialization mechanisms help overcoming some of these bottlenecks, there remain a number of obstacles in optimising knowledge flows in physically and technologically dispersed R&D facilities.
    Copyright Year 2005
    Copyright type All rights reserved
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    Created: Fri, 13 Dec 2013, 12:38:53 JST