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Managing internal embeddedness in multinational corporations’ R&D subsidiaries: An evolutionary perspective on the automotive industry in Silicon Valley

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  • Lô, Amadou
  • Geiger, Martha

Abstract

This paper analyses the processes through which multinational corporations' R&D subsidiaries conduct dual embeddedness from an internal embeddedness approach. While most studies that adopt a dual embeddedness perspective have analysed the influence of internal embeddedness on external embeddedness as a single effect (positive or negative), we offer a different stance by considering it through a double-edged effect. We conduct a multiple case study of R&D subsidiaries located in Silicon Valley and belonging to eight of the world's largest automotive manufacturing multinational corporations. By adopting an evolutionary perspective based on an analysis of a 23-year period (1995–2018), we find and unravel how to manage the double-edged effect of R&D subsidiaries' internal embeddedness on the development of external embeddedness by specifying two main levers: the autonomization of R&D subsidiaries and the headquarters' knowledge support of the subsidiaries. Our findings thus advance the understanding of R&D subsidiaries' dual embeddedness and external knowledge sourcing in technological contexts by proposing a model of the double influence of internal embeddedness on external embeddedness.

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  • Lô, Amadou & Geiger, Martha, 2022. "Managing internal embeddedness in multinational corporations’ R&D subsidiaries: An evolutionary perspective on the automotive industry in Silicon Valley," Technovation, Elsevier, vol. 113(C).
    • Handle: RePEc:eee:techno:v:113:y:2022:i:c:s0166497221002030
    DOI: 10.1016/j.technovation.2021.102422
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    1. Conroy, Kieran M. & Jacobs, Simon & Liu, Yang, 2023. "The dual knowledge role of open innovation intermediaries: Internal weaving and external filtering for MNE subsidiaries," Technovation, Elsevier, vol. 123(C).

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