An R&D management model for MNCs' subsidiaries: an empirical study of European affiliates in Taiwan

This study constructs a research and development (R&D) management model for European multinational corporations' (MNCs) subsidiaries in Taiwan. First of all, it reviews relevant literature, and then develops the research framework, which includes R&D strategies, R&D management mechanisms, and R&D effectiveness in formulating the research inventory and five basic hypotheses. A survey of 156 R&D employees from European subsidiaries in Taiwan was implemented, and LISREL and hierarchy regression analysis were utilised to verify the R&D model and effectiveness forecasting equations. Results show that a combination of active R&D strategy, and four kinds of R&D management mechanisms significantly explain 61% of the variation of R&D effectiveness. In the meantime, conclusions also indicate that European affiliates in Taiwan take R&D autonomy and utilisation of local resource in subsidiaries into consideration and through global communication, a balance of global integration with the parent company and local responsiveness of subsidiaries can be reached.