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 capability examined is that of consistently generating radical innovation in a reliable and repeatable manner. In this exploratory study, we analyze 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 suggest three key insights. First, the capability development process follows multiple, intertwined pathways shaped by the actions and strategic choices of both the headquarters and the subsidiary. Second, a subsidiary’s local embeddedness provides access to new insights, while its global connectedness offers the legitimacy and head-office attention necessary to implement these insights. Finally, a prerequisite for developing radical innovation capability is the subsidiary’s initiative in establishing incremental innovation programs that generate a steady pipeline of ideas; such capability cannot simply be transferred from the parent organization.
Copyright Date
January 2014
Publication Date
1-1-2014
DOI
10.5465/ambpp.2014.12415abstract
Keywords
Innovation, Marketing management, Market subsidiaries
Conference
Academy of Management Annual Meeting, 1-5 August, 2014, Philadelphia
