Building radical innovation capabilities in emerging market subsidiaries: The Case of Intel India
Description
This paper explores the processes underlying the development of new capabilities in emerging market subsidiaries of multinational corporations (MNCs). The focal capability is the ability to generate radical innovation in a reliable and repeatable manner. In this exploratory study, we examine the process of building radical innovation capability at Intel India using the charter–competence co-evolution model proposed by Birkinshaw and Hood (1998). Our findings offer three key insights. First, the capability development process follows multiple, interconnected pathways shaped by the strategic choices and actions of both the headquarters and the subsidiary. Second, a subsidiary’s local embeddedness provides access to novel insights, while its global connectedness ensures the legitimacy and head-office support required to implement these insights. Finally, we find that a critical prerequisite for developing radical innovation capability is the subsidiary’s initiative in establishing incremental innovation programs that generate a steady stream of ideas. Such capability cannot simply be transferred from the parent organization but must be cultivated internally over time.
Copyright Date
January 2014
Publication Date
1-1-2014
Keywords
Innovation, Marketing management, Market subsidiaries
Conference
Academy of International Business Annual Meeting, 23-26 June, 2014, Vancouver
