uu.seUppsala University Publications
Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Rationality vs ignorance: The role of MNE headquarters in subsidiaries' innovation processes
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies.
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies.
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies.
2011 (English)In: Journal of International Business Studies, ISSN 0047-2506, E-ISSN 1478-6990, Vol. 42, no 7, 958-970 p.Article in journal (Refereed) Published
Abstract [en]

Innovation processes in multinational enterprises (MNE) are largely context specific, and carried out at the subsidiary level. Therefore, corporate headquarters (HQ) involvement in these processes becomes a major issue. A typical assumption in international business (IB) theory is that HQ based on its own knowledge, makes rational choices about its own involvement. However, according to some studies, HQ involvement can be assumed to be less rational, in the sense that it reflects not HQ knowledge but the normative expectations associated with the role of HQ as top manager. The purpose of this paper is to contrast these two perspectives by exploring their implications regarding the relationship between HQ knowledge about and HQ involvement in innovation processes at the subsidiary level, and regarding the impact of this potential involvement on innovation processes performance. The analysis results in six propositions and an illustrative case. Our contribution to IB research is primarily theoretical: we bring to the scene an alternative approach the sheer ignorance perspective with the potential to explain the behavior of key actors in the MNE. We argue, however, that the theoretical conflict between the two perspectives should be addressed by empirical research. We conclude with suggestions for the directions such research might take.

Place, publisher, year, edition, pages
2011. Vol. 42, no 7, 958-970 p.
Keyword [en]
bounded rationality, sheer ignorance, headquarters, subsidiary, innovation processes, performance
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:uu:diva-160487DOI: 10.1057/jibs.2011.24ISI: 000295146500005OAI: oai:DiVA.org:uu-160487DiVA: diva2:451500
Available from: 2011-10-26 Created: 2011-10-25 Last updated: 2017-12-08Bibliographically approved

Open Access in DiVA

No full text

Other links

Publisher's full text

Authority records BETA

Ciabuschi, Francesco

Search in DiVA

By author/editor
Ciabuschi, Francesco
By organisation
Department of Business Studies
In the same journal
Journal of International Business Studies
Economics and Business

Search outside of DiVA

GoogleGoogle Scholar

doi
urn-nbn

Altmetric score

doi
urn-nbn
Total: 464 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf