Technology Sourcing and a 'Creative Transition' in Subsidiaries: The Case of MNE Operations in China

Marina Papanastassiou, Robert Pearce, Si Zhang

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    Abstract

    The paper focuses on a ‘creative transition' (CT) as a crucial tipping point in the strategic evolution of MNE subsidiaries. Before a CT a subsidiary's operations will be based around application (in a market-seeking or efficiency-seeking strategy) of the successful established technologies and products of the MNE group. After the CT (as, for example, a Product Mandate) the subsidiary will be deriving new sources of technology, notably from its host country, and developing new products from these. Thus, we argue, the sources of technology
    accessed and/or generated by a subsidiary are crucial in defining its competitive status. Evidence cited from a study of MNE subsidiaries in China demonstrates the value of the concept of CT. Though pre-CT operations of
    an ES, export-oriented, nature have played a role in China it is shown that, to an increasing degree, it is now post-CT innovation that provides the dominant imperative. But, contrary to traditional Product Mandates, a major strand of this innovation targets an embedded position in China's growth for MNEs.
    Original languageEnglish
    Title of host publicationProceedings of the 54rd Annual Meeting of the Academy of International Business
    EditorsSusan Feinberg, Tunga Kiyak
    Place of PublicationEast Lansing, MI
    PublisherAcademy of International Business
    Publication date2012
    Pages92
    Publication statusPublished - 2012
    EventAIB 2012 Annual Meeting: Rethinking the Roles of Business, Government and NGOs in the Global Economy - George Washington University and University of Maryland, Washington, United States
    Duration: 30 Jun 20123 Jul 2012
    Conference number: 54
    http://aib.msu.edu/events/2012/

    Conference

    ConferenceAIB 2012 Annual Meeting
    Number54
    LocationGeorge Washington University and University of Maryland
    CountryUnited States
    CityWashington
    Period30/06/201203/07/2012
    Internet address
    SeriesAcademy of International Business. Annual Meeting. Proceedings
    Volume54
    ISSN2078-4430

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