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Headquarters involvement and efficiency of innovation development and transfer in multinationals: A matter of sheer ignorance?
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.
2012 (English)In: International Business Review, ISSN 0969-5931, E-ISSN 1873-6149, Vol. 21, no 2, 130-144 p.Article in journal (Refereed) Published
Abstract [en]

We compare two theoretical perspectives on the knowledge situation of headquarters (HQ) in multinational corporations: the bounded rationality perspective and the sheer ignorance perspective. We claim that these perspectives lead to different expectations when it comes to HQ's role and the effects of HQ involvement in innovation processes at the subsidiary level. More specifically, we examine the impact of HQ involvement on the efficiency of 71 subsidiary innovation projects. The findings show that HQ involvement in innovation development and transfer has a negative rather than a positive impact on efficiency in both processes. We contribute by showing and suggesting that the sheer ignorance perspective might provide a more accurate portrayal of the HQ knowledge situation than the bounded rationality perspective does. This study furthers understanding of the role of HQ in the contemporary, knowledge-creating multinational.

Place, publisher, year, edition, pages
2012. Vol. 21, no 2, 130-144 p.
Keyword [en]
Bounded rationality, Headquarters' role, Innovation development, Innovation transfer, Sheer ignorance
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:uu:diva-173999DOI: 10.1016/j.ibusrev.2011.02.003ISI: 000302761000002OAI: oai:DiVA.org:uu-173999DiVA: diva2:526604
Available from: 2012-05-14 Created: 2012-05-09 Last updated: 2017-12-07Bibliographically approved

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Ciabuschi, FrancescoForsgren, MatsMartín Martín, Oscar

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