Live and Let Die: A Survival Analysis of Foreign R&D Units in Swedish MNEs

Lars Håkanson, Philip Kappen

    Research output: Contribution to journalJournal articleResearchpeer-review

    Abstract

    This paper develops and tests a set of hypotheses regarding factors that influenced the longevity of foreign research and development units in Swedish multinational enterprises over the period 1992–2012. The results reveal an underexplored aspect of the R&D internationalization—the volatility of foreign R&D laboratories. During the investigated period, more than 40% of the R&D units in the sample had been terminated. The results substantiate earlier research regarding the negative effects of mergers and acquisitions on R&D in acquired units but show that these effects are not immediate. They appear – if at all – with a time lag of several years. The hazard of closure for an individual unit seems to be more strongly related to its role and position within the MNE than to local country characteristics. It was smaller for strongly locally embedded units and units with global mandates, but – contrary to expectations – the hazard was greater for units highly integrated with the rest of the MNE.
    Original languageEnglish
    JournalInternational Business Review
    Volume25
    Issue number6
    Pages (from-to)1185-1196
    Number of pages12
    ISSN0969-5931
    DOIs
    Publication statusPublished - Dec 2016

    Keywords

    • International R&D
    • Survival analysis
    • Population ecology
    • Swedish MNEs
    • Subsidiary evolution

    Cite this

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    Live and Let Die : A Survival Analysis of Foreign R&D Units in Swedish MNEs. / Håkanson, Lars; Kappen, Philip.

    In: International Business Review, Vol. 25, No. 6, 12.2016, p. 1185-1196.

    Research output: Contribution to journalJournal articleResearchpeer-review

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