Survival analysis of foreign R&D units in Swedish Multinational Enterprises

Eskild Knarhøj Johannsen

Student thesis: Master thesis

Abstract

Little information is available on the longitudinal survival of foreign R&D units in multinational enterprises. The study conducts a time-to-event analysis in form of proportional hazard regression on a cohort of 65 foreign R&D units in 15 Swedish multinationals analyzed in the time period 1991 to 2012. By including failed cases in the analysis the results control for possible survivorship bias originating from the selection of the cohort itself. The results presented are nonprobability based longitudinal evidence of the survival of a particular set of R&D units over a twenty year time period. The study found five significant explanatory variables. First, the evidence suggests positive associations between age, a high degree of local autonomy over hiring and firing of the unit’s R&D professionals, training programs for R&D personnel, and salary level for R&D employees, and lastly the ability to produce high quality output of a foreign R&D unit and survival. Second, acquisition as mode of establishment, and cumbersome communication between local and parent R&D are negatively associated with survival.

EducationsMSc in International Business, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2013
Number of pages78