Dual Headquarters Involvement in Subsidiary Innovation

Phillip Christopher Nell, Philip Kappen, Henrik Dellestrand

    Research output: Contribution to conferencePaperResearchpeer-review

    Abstract

    The strategy and international business literature has identified the overall potential for headquarters to add value by allocating resources to subsidiary activities, but little is known about the extent to which multiple headquarters simultaneously involves itself in subsidiary operations. The current paper takes on this neglected question by empirically investigating corporate and divisional headquarters direct involvement in innovation development projects at the subsidiary level. Analyses that draw upon 85 innovation development projects in 23 multinational enterprises reveal that dual innovation importance, i.e., an innovation that is important for the division and the corporate level, drives dual headquarters involvement in innovation development. Contrary to expectations, no significant effect of dual embeddedness on dual headquarters involvement is found. The network size of the developing subsidiary positively moderates the two aforementioned effects on dual headquarters involvement in innovation development. The results lend support for the notion that parenting in complex structures entails complex headquarters structures. Thus, the results question simplistic views on headquarters. It appears that multiple headquarters do get involved in specific subsidiary activities and that the theoretical advancements on headquarters should be discussed in the context of their complexity to reflect the nature of the contemporary multinational enterprise.
    Original languageEnglish
    Publication date2014
    Number of pages25
    Publication statusPublished - 2014
    EventAIB 2014 Annual Meeting : Local Context in Global Business - Westin Bayshore, Vancouver, Canada
    Duration: 23 Jun 201426 Jun 2014
    Conference number: 56
    http://aib.msu.edu/events/2014/

    Conference

    ConferenceAIB 2014 Annual Meeting
    Number56
    LocationWestin Bayshore
    CountryCanada
    CityVancouver
    Period23/06/201426/06/2014
    Internet address

    Bibliographical note

    CBS Library does not have access to this material

    Cite this

    Nell, P. C., Kappen, P., & Dellestrand, H. (2014). Dual Headquarters Involvement in Subsidiary Innovation. Paper presented at AIB 2014 Annual Meeting , Vancouver, Canada.
    Nell, Phillip Christopher ; Kappen, Philip ; Dellestrand, Henrik. / Dual Headquarters Involvement in Subsidiary Innovation. Paper presented at AIB 2014 Annual Meeting , Vancouver, Canada.25 p.
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    abstract = "The strategy and international business literature has identified the overall potential for headquarters to add value by allocating resources to subsidiary activities, but little is known about the extent to which multiple headquarters simultaneously involves itself in subsidiary operations. The current paper takes on this neglected question by empirically investigating corporate and divisional headquarters direct involvement in innovation development projects at the subsidiary level. Analyses that draw upon 85 innovation development projects in 23 multinational enterprises reveal that dual innovation importance, i.e., an innovation that is important for the division and the corporate level, drives dual headquarters involvement in innovation development. Contrary to expectations, no significant effect of dual embeddedness on dual headquarters involvement is found. The network size of the developing subsidiary positively moderates the two aforementioned effects on dual headquarters involvement in innovation development. The results lend support for the notion that parenting in complex structures entails complex headquarters structures. Thus, the results question simplistic views on headquarters. It appears that multiple headquarters do get involved in specific subsidiary activities and that the theoretical advancements on headquarters should be discussed in the context of their complexity to reflect the nature of the contemporary multinational enterprise.",
    keywords = "Multinational Enterprises, Headquarters, Subsidiaries, Involvement, Innovation, Embeddedness",
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    Nell, PC, Kappen, P & Dellestrand, H 2014, 'Dual Headquarters Involvement in Subsidiary Innovation' Paper presented at, Vancouver, Canada, 23/06/2014 - 26/06/2014, .

    Dual Headquarters Involvement in Subsidiary Innovation. / Nell, Phillip Christopher; Kappen, Philip; Dellestrand, Henrik.

    2014. Paper presented at AIB 2014 Annual Meeting , Vancouver, Canada.

    Research output: Contribution to conferencePaperResearchpeer-review

    TY - CONF

    T1 - Dual Headquarters Involvement in Subsidiary Innovation

    AU - Nell, Phillip Christopher

    AU - Kappen, Philip

    AU - Dellestrand, Henrik

    N1 - CBS Library does not have access to this material

    PY - 2014

    Y1 - 2014

    N2 - The strategy and international business literature has identified the overall potential for headquarters to add value by allocating resources to subsidiary activities, but little is known about the extent to which multiple headquarters simultaneously involves itself in subsidiary operations. The current paper takes on this neglected question by empirically investigating corporate and divisional headquarters direct involvement in innovation development projects at the subsidiary level. Analyses that draw upon 85 innovation development projects in 23 multinational enterprises reveal that dual innovation importance, i.e., an innovation that is important for the division and the corporate level, drives dual headquarters involvement in innovation development. Contrary to expectations, no significant effect of dual embeddedness on dual headquarters involvement is found. The network size of the developing subsidiary positively moderates the two aforementioned effects on dual headquarters involvement in innovation development. The results lend support for the notion that parenting in complex structures entails complex headquarters structures. Thus, the results question simplistic views on headquarters. It appears that multiple headquarters do get involved in specific subsidiary activities and that the theoretical advancements on headquarters should be discussed in the context of their complexity to reflect the nature of the contemporary multinational enterprise.

    AB - The strategy and international business literature has identified the overall potential for headquarters to add value by allocating resources to subsidiary activities, but little is known about the extent to which multiple headquarters simultaneously involves itself in subsidiary operations. The current paper takes on this neglected question by empirically investigating corporate and divisional headquarters direct involvement in innovation development projects at the subsidiary level. Analyses that draw upon 85 innovation development projects in 23 multinational enterprises reveal that dual innovation importance, i.e., an innovation that is important for the division and the corporate level, drives dual headquarters involvement in innovation development. Contrary to expectations, no significant effect of dual embeddedness on dual headquarters involvement is found. The network size of the developing subsidiary positively moderates the two aforementioned effects on dual headquarters involvement in innovation development. The results lend support for the notion that parenting in complex structures entails complex headquarters structures. Thus, the results question simplistic views on headquarters. It appears that multiple headquarters do get involved in specific subsidiary activities and that the theoretical advancements on headquarters should be discussed in the context of their complexity to reflect the nature of the contemporary multinational enterprise.

    KW - Multinational Enterprises

    KW - Headquarters

    KW - Subsidiaries

    KW - Involvement

    KW - Innovation

    KW - Embeddedness

    M3 - Paper

    ER -

    Nell PC, Kappen P, Dellestrand H. Dual Headquarters Involvement in Subsidiary Innovation. 2014. Paper presented at AIB 2014 Annual Meeting , Vancouver, Canada.