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Uncovering the role of cross-border strategic alliances and expertise decision centralization in enhancing product-service innovation in MMNEs

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  • Vendrell-Herrero, Ferran
  • Gomes, Emanuel
  • Bustinza, Oscar F.
  • Mellahi, Kamel

Abstract

Research is needed on effective servitization by multinational enterprises. This study examines whether Manufacturing Multinational Enterprises (MMNEs) can obtain better servitization outcomes by partnering with Knowledge Intensive Business Service (KIBS) firms and or by internationalizing their service function. In addition, the paper analyses the centralization of management decisions of human resources as an organizational mechanism to overcome coordination failure between product and service units. Our primary research data contain survey responses from 285 MMNEs collected in cooperation with an industry partner. Results show that cross-border strategic alliances and expertise decision centralization are critical to enhance product-service innovation.

Suggested Citation

  • Vendrell-Herrero, Ferran & Gomes, Emanuel & Bustinza, Oscar F. & Mellahi, Kamel, 2018. "Uncovering the role of cross-border strategic alliances and expertise decision centralization in enhancing product-service innovation in MMNEs," International Business Review, Elsevier, vol. 27(4), pages 814-825.
    • Handle: RePEc:eee:iburev:v:27:y:2018:i:4:p:814-825
    DOI: 10.1016/j.ibusrev.2018.01.005
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    Cited by:

    1. Jieun Lee & Hyung-Deok Shin & Saehwa Hong, 2021. "Servitization of Global Manufacturing Business," Journal of Industry, Competition and Trade, Springer, vol. 21(4), pages 565-584, December.
    2. Al-Tabbaa, Omar & Zahoor, Nadia, 2024. "Alliance management capability and SMEs’ international expansion: The role of innovation pathways," Journal of Business Research, Elsevier, vol. 171(C).
    3. Bustinza, Oscar F. & Vendrell-Herrero, Ferran & Gomes, Emanuel, 2020. "Unpacking the effect of strategic ambidexterity on performance: A cross-country comparison of MMNEs developing product-service innovation," International Business Review, Elsevier, vol. 29(6).
    4. Antonio Juan Briones-Peñalver & Juan Andrés Bernal-Conesa & Carmen Nieves Nieto, 0. "Knowledge and innovation management model. Its influence on technology transfer and performance in Spanish Defence industry," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-21.
    5. Luis Filipe Lages & Nuno Catarino & Emanuel Gomes & Peter Toh & Carlos Reis-Marques & Mario Mohr & Sebastian Max Borde & Omid Asgari & Ronnie Figueiredo & Nuno Grosso & David Perez & Ana Ponte & Sílvi, 2023. "Solutions for the commercialization challenges of Horizon Europe and earth observation consortia: co-creation, innovation, decision-making, tech-transfer, and sustainability actions," Electronic Commerce Research, Springer, vol. 23(3), pages 1621-1663, September.
    6. Kaur, Sarabjot & Gupta, Shivam & Singh, Sanjay Kumar & Perano, Mirko, 2019. "Organizational ambidexterity through global strategic partnerships: A cognitive computing perspective," Technological Forecasting and Social Change, Elsevier, vol. 145(C), pages 43-54.
    7. Yan-chao Yin & Fu-zhao Chen & Wei-zhi Liao & Cui-yin Liu, 2019. "An Optimal Composition Strategy for Knowledge Service Component Based on Flexible Tracking Particle Swarm Algorithm," Complexity, Hindawi, vol. 2019, pages 1-14, December.
    8. Wang, Na & Wang, Yonggui, 2021. "Does parenting matter in subsidiary innovation in emerging economies? Exploring the role of parent superior competitiveness in affecting subsidiary contextual ambidexterity," International Business Review, Elsevier, vol. 30(1).
    9. Bustinza, Oscar F. & Lafuente, Esteban & Rabetino, Rodrigo & Vaillant, Yancy & Vendrell-Herrero, Ferran, 2019. "Make-or-buy configurational approaches in product-service ecosystems and performance," Journal of Business Research, Elsevier, vol. 104(C), pages 393-401.
    10. Ovuakporie, Oghogho Destina & Pillai, Kishore Gopalakrishna & Wang, Chengang & Wei, Yingqi, 2021. "Differential moderating effects of strategic and operational reconfiguration on the relationship between open innovation practices and innovation performance," Research Policy, Elsevier, vol. 50(1).
    11. Antonio Juan Briones-Peñalver & Juan Andrés Bernal-Conesa & Carmen Nieves Nieto, 2020. "Knowledge and innovation management model. Its influence on technology transfer and performance in Spanish Defence industry," International Entrepreneurship and Management Journal, Springer, vol. 16(2), pages 595-615, June.
    12. Iheanachor, Nkemdilim & Umukoro, Immanuel & Yela Aránega, Alba, 2023. "Ecosystem emergence in emerging markets: Evidence from the Nigerian digital financial services ecosystem," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    13. Shah, Syed Aamir Ali & Jajja, Muhammad Shakeel Sadiq & Chatha, Kamran Ali & Farooq, Sami, 2020. "Servitization and supply chain integration: An empirical analysis," International Journal of Production Economics, Elsevier, vol. 229(C).
    14. Vendrell-Herrero, Ferran & Bustinza, Oscar F. & Opazo-Basaez, Marco, 2021. "Information technologies and product-service innovation: The moderating role of service R&D team structure," Journal of Business Research, Elsevier, vol. 128(C), pages 673-687.
    15. Xing, Yijun & Liu, Yipeng, 2023. "Integrating product-service innovation into green supply chain management from a life cycle perspective: A systematic review and future research directions," Technovation, Elsevier, vol. 126(C).
    16. Vendrell-Herrero, Ferran & Bustinza, Oscar F. & Opazo-Basaez, Marco & Gomes, Emanuel, 2023. "Treble innovation firms: Antecedents, outcomes, and enhancing factors," International Journal of Production Economics, Elsevier, vol. 255(C).
    17. Sklyar, Alexey & Kowalkowski, Christian & Tronvoll, Bård & Sörhammar, David, 2019. "Organizing for digital servitization: A service ecosystem perspective," Journal of Business Research, Elsevier, vol. 104(C), pages 450-460.
    18. Marco Opazo-Basáez & Ferran Vendrell-Herrero & Oscar F. Bustinza, 2018. "Uncovering Productivity Gains of Digital and Green Servitization: Implications from the Automotive Industry," Sustainability, MDPI, vol. 10(5), pages 1-17, May.

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