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Influence of internal and external relationships of foreign subsidiaries on innovation performance. Evidence from Germany, Czech Republic and Romania

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  • Golebiowski, Tomasz
  • Lewandowska, Malgorzata Stefania

Abstract

The paper assesses the influence of foreign-owned subsidiaries’ (FS) intra- and inter-organizational relationships on product innovation performance. Data drawn from CIS figures for the 2006-2008 cover 1747 FS established in Germany, 385 FS in the Czech Republic, and 276 FS in Romania. Our analysis, employing the structural equation model, reveals a positive influence of FS internal relationships (with both local and foreign partners) and of FS external linkages on product and marketing innovation, the strongest in Germany-based FS. Moreover, a significant positive influence of FS internal relationships on external innovation cooperation is shown. Results suggest a relatively deeper embeddedness of Germany-based FS than of FS located in analysed transition economies.

Suggested Citation

  • Golebiowski, Tomasz & Lewandowska, Malgorzata Stefania, 2015. "Influence of internal and external relationships of foreign subsidiaries on innovation performance. Evidence from Germany, Czech Republic and Romania," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 20(3), pages 304-327.
    • Handle: RePEc:nms:joeems:jeems-2015-03-golebiowski
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    File URL: https://www.nomos-elibrary.de/10.5771/0949-6181-2015-3-304
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    Citations

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    Cited by:

    1. Joanna Błach, 2020. "Barriers to Financial Innovation—Corporate Finance Perspective," JRFM, MDPI, vol. 13(11), pages 1-23, November.
    2. Samuel AMPONSAH ODEI & Michael AMPONSAH ODEI & Henry Junior ANDERSON, 2020. "Consultants and firm-level innovation performances: a doubly robust estimation approach," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 11, pages 288-311, December.
    3. De Marchi, Valentina & Cainelli, Giulio & Grandinetti, Roberto, 2022. "Multinational subsidiaries and green innovation," International Business Review, Elsevier, vol. 31(6).
    4. Albis, Nadia & Álvarez, Isabel & García, Aura, 2021. "The impact of external, internal, and dual relational embeddedness on the innovation performance of foreign subsidiaries: Evidence from a developing country," Journal of International Management, Elsevier, vol. 27(4).
    5. Scott-Kennel, Joanna & Saittakari, Iiris, 2020. "Sourcing or sharing in MNE networks? National headquarters and foreign subsidiaries as knowledge conduits in SMOPECs," International Business Review, Elsevier, vol. 29(1).

    More about this item

    Keywords

    foreign subsidiary; internal and external relationships; innovation cooperation; transition economies;
    All these keywords.

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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