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How does R&D internationalization in multinational firms affect their innovative performance? The moderating role of international collaboration in the energy industry

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  • Hurtado-Torres, Nuria E.
  • Aragón-Correa, J. Alberto
  • Ortiz-de-Mandojana, Natalia

Abstract

This paper examines the effects of the degree and geographic diversification of a firm’s R&D internationalization on its innovative performance. We use an unbalanced panel dataset of 401 observations from 110 multinational firms operating in the energy industry over a period of six years to support the argument that both the degree and the geographic diversification of a firm’s R&D internationalization have an inverted U-shaped relationship with a firm’s innovative performance. Our results also show that collaboration among R&D units located in different countries moderates this relationship by reducing both the positive effects and the challenges of the degree of R&D internationalization. This paper extends the emerging innovation focus in the headquarters–subsidiary literature by contributing to our understanding of the implications of the international R&D activities of firms and supports the utilization of social exchange theory in order to identify the moderating influence of the collaboration among a firm’s R&D units located in different countries.

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  • Hurtado-Torres, Nuria E. & Aragón-Correa, J. Alberto & Ortiz-de-Mandojana, Natalia, 2018. "How does R&D internationalization in multinational firms affect their innovative performance? The moderating role of international collaboration in the energy industry," International Business Review, Elsevier, vol. 27(3), pages 514-527.
    • Handle: RePEc:eee:iburev:v:27:y:2018:i:3:p:514-527
    DOI: 10.1016/j.ibusrev.2017.10.003
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