IDEAS home Printed from https://ideas.repec.org/p/hhs/lucirc/2014_016.html
   My bibliography  Save this paper

How Do Geographical and Organisational Proximity Influence the Relational Pattern of MNCs’ Global Innovation Networks: An In-depth Case Study

Author

Listed:
  • Liu, Ju

    (CIRCLE, Lund University)

Abstract

This paper explores the influencing mechanism of geographical and organisational proximity/distance on the intra-firm relations and external linkages in multinational companies’ (MNCs) global innovation networks (GINs). It adopts an in-depth case study method and employs social network analysis to study the relational pattern of the case GINs and to understand how the relations are organised and why they are organised in a certain pattern. It is found that the intra-firm relations of both case MNCs’ GINs are similarly organised in a global way. The external linkages in the two case GINs are organised in different ways (global vs local) which depend on the dominant knowledge is science-based or engineering-based. Two influencing mechanisms, namely complementary effect and conditional reinforcing effect, are found and discussed. Evidences in practice are identified.

Suggested Citation

  • Liu, Ju, 2014. "How Do Geographical and Organisational Proximity Influence the Relational Pattern of MNCs’ Global Innovation Networks: An In-depth Case Study," Papers in Innovation Studies 2014/16, Lund University, CIRCLE - Centre for Innovation Research.
    • Handle: RePEc:hhs:lucirc:2014_016
    as

    Download full text from publisher

    File URL: http://wp.circle.lu.se/upload/CIRCLE/workingpapers/201416_Liu.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bruce Kogut & Udo Zander, 1992. "Knowledge of the Firm, Combinative Capabilities, and the Replication of Technology," Organization Science, INFORMS, vol. 3(3), pages 383-397, August.
    2. Michael Storper & Anthony J. Venables, 2004. "Buzz: face-to-face contact and the urban economy," Journal of Economic Geography, Oxford University Press, vol. 4(4), pages 351-370, August.
    3. Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1993. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(3), pages 577-598.
    4. David Keeble & Frank Wilkinson, 1999. "Collective Learning and Knowledge Development in the Evolution of Regional Clusters of High Technology SMEs in Europe," Regional Studies, Taylor & Francis Journals, vol. 33(4), pages 295-303.
    5. Neil M. Coe & Peter Dicken & Martin Hess, 2008. "Introduction: global production networks—debates and challenges," Journal of Economic Geography, Oxford University Press, vol. 8(3), pages 267-269, May.
    6. Marjorie A Lyles & Jane E Salk, 1996. "Knowledge Acquisition from Foreign Parents in International Joint Ventures: An Empirical Examination in the Hungarian Context," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(4), pages 877-903, December.
    7. Jannika Mattes, 2012. "Dimensions of Proximity and Knowledge Bases: Innovation between Spatial and Non-spatial Factors," Regional Studies, Taylor & Francis Journals, vol. 46(8), pages 1085-1099, December.
    8. Keld Laursen & Toke Reichstein & Ammon Salter, 2011. "Exploring the Effect of Geographical Proximity and University Quality on University-Industry Collaboration in the United Kingdom," Regional Studies, Taylor & Francis Journals, vol. 45(4), pages 507-523.
    9. Jan Johanson & Jan-Erik Vahlne, 1977. "The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 8(1), pages 23-32, March.
    10. Lars Coenen & Jerker Moodysson & Bjørn T. Asheim, 2004. "Nodes, networks and proximities: on the knowledge dynamics of the Medicon Valley biotech cluster," European Planning Studies, Taylor & Francis Journals, vol. 12(7), pages 1003-1018, June.
    11. M. S. Gertler & Y. M. Levitte, 2005. "Local Nodes in Global Networks: The Geography of Knowledge Flows in Biotechnology Innovation," Industry and Innovation, Taylor & Francis Journals, vol. 12(4), pages 487-507.
    12. Kevin Morgan, 2007. "The Learning Region: Institutions, Innovation and Regional Renewal," Regional Studies, Taylor & Francis Journals, vol. 41(sup1), pages 147-159.
    13. Jensen, Morten Berg & Johnson, Bjorn & Lorenz, Edward & Lundvall, Bengt Ake, 2007. "Forms of knowledge and modes of innovation," Research Policy, Elsevier, vol. 36(5), pages 680-693, June.
    14. Paul Almeida & Bruce Kogut, 1999. "Localization of Knowledge and the Mobility of Engineers in Regional Networks," Management Science, INFORMS, vol. 45(7), pages 905-917, July.
    15. Eric Sheppard, 2002. "The Spaces and Times of Globalization: Place, Scale, Networks, and Positionality," Economic Geography, Taylor & Francis Journals, vol. 78(3), pages 307-330, July.
    16. Iammarino, Simona & McCann, Philip, 2006. "The structure and evolution of industrial clusters: Transactions, technology and knowledge spillovers," Research Policy, Elsevier, vol. 35(7), pages 1018-1036, September.
    17. Eike W. Schamp & Bernd Rentmeister & Vivien Lo, 2004. "Dimensions of proximity in knowledge-based networks: The cases of investment banking and automobile design," European Planning Studies, Taylor & Francis Journals, vol. 12(5), pages 607-624, July.
    18. Alf Erko Lublinski, 2003. "Does Geographic Proximity Matter? Evidence from Clustered and Non-clustered Aeronautic Firms in Germany," Regional Studies, Taylor & Francis Journals, vol. 37(5), pages 453-467.
    19. Bj–rn Johnson & Edward Lorenz & Bengt-Åke Lundvall, 2002. "Why all this fuss about codified and tacit knowledge?," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 11(2), pages 245-262.
    20. Ina Drejer & Anker Lund Vinding, 2007. "Searching Near and Far: Determinants of Innovative Firms' Propensity to Collaborate Across Geographical Distance," Industry and Innovation, Taylor & Francis Journals, vol. 14(3), pages 259-275.
    21. Ake Lundvall & Bengt, 2003. "Why the new economy is a learning economy," ECONOMIA E POLITICA INDUSTRIALE, FrancoAngeli Editore, vol. 2003(117).
    22. Patel, Pari & Vega, Modesto, 1999. "Patterns of internationalisation of corporate technology: location vs. home country advantages1," Research Policy, Elsevier, vol. 28(2-3), pages 145-155, March.
    23. John H Dunning, 1980. "Towards an Eclectic Theory of International Production: Some Empirical Tests," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 11(1), pages 9-31, March.
    24. Henrik Bresman & Julian Birkinshaw & Robert Nobel, 1999. "Knowledge Transfer in International Acquisitions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 30(3), pages 439-462, September.
    25. Boehe, Dirk Michael, 2007. "Product development in MNC subsidiaries: Local linkages and global interdependencies," Journal of International Management, Elsevier, vol. 13(4), pages 488-512, December.
    26. Christoph Meister & Claudia Werker, 2004. "Physical and organizational proximity in territorial innovation systems," Journal of Economic Geography, Oxford University Press, vol. 4(1), pages 1-2, January.
    27. Jean-François Hennart, 2009. "Down with MNE-centric theories! Market entry and expansion as the bundling of MNE and local assets," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(9), pages 1432-1454, December.
    28. Mohan Subramaniam & N. Venkatraman, 2001. "Determinants of transnational new product development capability: testing the influence of transferring and deploying tacit overseas knowledge," Strategic Management Journal, Wiley Blackwell, vol. 22(4), pages 359-378, April.
    29. Alice Lam, 2003. "Organizational Learning in Multinationals: R&D Networks of Japanese and US MNEs in the UK," Journal of Management Studies, Wiley Blackwell, vol. 40(3), pages 673-703, May.
    30. Anne Aguil�ra & Virginie Lethiais & Alain Rallet, 2012. "Spatial and Non-spatial Proximities in Inter-firm Relations: An Empirical Analysis," Industry and Innovation, Taylor & Francis Journals, vol. 19(3), pages 187-202, April.
    31. Baptista, Rui & Swann, Peter, 1998. "Do firms in clusters innovate more?," Research Policy, Elsevier, vol. 27(5), pages 525-540, September.
    32. Jung Won Sonn & Michael Storper, 2008. "The Increasing Importance of Geographical Proximity in Knowledge Production: An Analysis of US Patent Citations, 1975–1997," Environment and Planning A, , vol. 40(5), pages 1020-1039, May.
    33. Florida, Richard, 1997. "The globalization of R&D: Results of a survey of foreign-affiliated R&D laboratories in the USA," Research Policy, Elsevier, vol. 26(1), pages 85-103, March.
    34. Martin Gargiulo & Mario Benassi, 2000. "Trapped in Your Own Net? Network Cohesion, Structural Holes, and the Adaptation of Social Capital," Organization Science, INFORMS, vol. 11(2), pages 183-196, April.
    35. Andre Torre & Alain Rallet, 2005. "Proximity and Localization," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 47-59.
    36. Ingmar Björkman & Wilhelm Barner-Rasmussen & Li Li, 2004. "Managing knowledge transfer in MNCs: the impact of headquarters control mechanisms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(5), pages 443-455, September.
    37. Peter Dicken & Anders Malmberg, 2001. "Firms in Territories: A Relational Perspective," Economic Geography, Taylor & Francis Journals, vol. 77(4), pages 345-363, October.
    38. George P. Huber & Danial J. Power, 1985. "Retrospective reports of strategic‐level managers: Guidelines for increasing their accuracy," Strategic Management Journal, Wiley Blackwell, vol. 6(2), pages 171-180, April.
    39. Klaus E. Meyer & Ram Mudambi & Rajneesh Narula, 2011. "Multinational Enterprises and Local Contexts: The Opportunities and Challenges of Multiple Embeddedness," Journal of Management Studies, Wiley Blackwell, vol. 48(2), pages 235-252, March.
    40. John H Dunning, 1995. "Reappraising the Eclectic Paradigm in an Age of Alliance Capitalism," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 26(3), pages 461-491, September.
    41. Zander, Ivo, 1999. "How do you mean 'global'? An empirical investigation of innovation networks in the multinational corporation," Research Policy, Elsevier, vol. 28(2-3), pages 195-213, March.
    42. Ram Mudambi & Pietro Navarra, 2004. "Is knowledge power? Knowledge flows, subsidiary power and rent-seeking within MNCs," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(5), pages 385-406, September.
    43. Persson, Magnus, 2006. "The impact of operational structure, lateral integrative mechanisms and control mechanisms on intra-MNE knowledge transfer," International Business Review, Elsevier, vol. 15(5), pages 547-569, October.
    44. Andr Torre Shaw & Jean-Pierre Gilly, 2000. "On the Analytical Dimension of Proximity Dynamics," Regional Studies, Taylor & Francis Journals, vol. 34(2), pages 169-180.
    45. Bengt-Ake Lundvall, 2004. "Introduction to 'Technological infrastructure and international competitiveness' by Christopher Freeman," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 13(3), pages 531-539, June.
    46. Francesco Ciabuschi & Henrik Dellestrand & Oscar Martín Martín, 2011. "Internal Embeddedness, Headquarters Involvement, and Innovation Importance in Multinational Enterprises," Journal of Management Studies, Wiley Blackwell, vol. 48(7), pages 1612-1639, November.
    47. Bruno Cassiman & Reinhilde Veugelers, 2006. "In Search of Complementarity in Innovation Strategy: Internal R& D and External Knowledge Acquisition," Management Science, INFORMS, vol. 52(1), pages 68-82, January.
    48. Ron Boschma, 2005. "Proximity and Innovation: A Critical Assessment," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 61-74.
    49. Cantwell, John, 1995. "The Globalisation of Technology: What Remains of the Product Cycle Model?," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 19(1), pages 155-174, February.
    50. repec:bla:scandj:v:104:y:2002:i:4:p:531-45 is not listed on IDEAS
    51. Kevin Morgan, 2004. "The exaggerated death of geography: learning, proximity and territorial innovation systems," Journal of Economic Geography, Oxford University Press, vol. 4(1), pages 3-21, January.
    52. Kevin Morgan, 1997. "The Learning Region: Institutions, Innovation and Regional Renewal," Regional Studies, Taylor & Francis Journals, vol. 31(5), pages 491-503.
    53. Anne Lorentzen, 2008. "Knowledge networks in local and global space," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 20(6), pages 533-545.
    54. Ron Boschma, 2004. "Competitiveness of Regions from an Evolutionary Perspective," Regional Studies, Taylor & Francis Journals, vol. 38(9), pages 1001-1014.
    55. Marjorie A Lyles & Jane E Salk, 1996. "Knowledge Acquisition from Foreign Parents in International Joint Ventures: An Empirical Examination in the Hungarian Context," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(5), pages 877-903, December.
    56. John Seely Brown & Paul Duguid, 1991. "Organizational Learning and Communities-of-Practice: Toward a Unified View of Working, Learning, and Innovation," Organization Science, INFORMS, vol. 2(1), pages 40-57, February.
    57. Per Botolf Maurseth & Bart Verspagen, 2002. "Knowledge Spillovers in Europe: A Patent Citations Analysis," Scandinavian Journal of Economics, Wiley Blackwell, vol. 104(4), pages 531-545, December.
    58. Peter J. Lane & Jane E. Salk & Marjorie A. Lyles, 2001. "Absorptive capacity, learning, and performance in international joint ventures," Strategic Management Journal, Wiley Blackwell, vol. 22(12), pages 1139-1161, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Liu , Ju & Liefner , Ingo, 2016. "The Joint Influencing Mechanism of Proximities and Knowledge Base on Multinational Companies’ Global Innovation Networks," Papers in Innovation Studies 2016/4, Lund University, CIRCLE - Centre for Innovation Research.
    2. Marina Papanastassiou & Robert Pearce & Antonello Zanfei, 2020. "Changing perspectives on the internationalization of R&D and innovation by multinational enterprises: A review of the literature," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 623-664, June.
    3. Patrick Regnér & Udo Zander, 2011. "Knowledge and Strategy Creation in Multinational Companies," Management International Review, Springer, vol. 51(6), pages 821-850, December.
    4. Robert Huggins & Piers Thompson, 2015. "Entrepreneurship, innovation and regional growth: a network theory," Small Business Economics, Springer, vol. 45(1), pages 103-128, June.
    5. Rune Dahl Fitjar & Andrés Rodríguez-Pose, 2014. "The geographical dimension of innovation collaboration: Networking and innovation in Norway," Urban Studies, Urban Studies Journal Limited, vol. 51(12), pages 2572-2595, September.
    6. Rajneesh Narula & Grazia D. Santangelo, 2007. "Location and R&D Alliances in the European ICT Industry," DRUID Working Papers 07-05, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    7. Rosina Moreno & Ernest Miguélez, 2012. "A Relational Approach To The Geography Of Innovation: A Typology Of Regions," Journal of Economic Surveys, Wiley Blackwell, vol. 26(3), pages 492-516, July.
    8. Morescalchi, Andrea & Pammolli, Fabio & Penner, Orion & Petersen, Alexander M. & Riccaboni, Massimo, 2015. "The evolution of networks of innovators within and across borders: Evidence from patent data," Research Policy, Elsevier, vol. 44(3), pages 651-668.
    9. Sajjad Jasimuddin & Jun Li & Nicholas Perdikis, 2015. "Linkage between geographic space and knowledge transfer by multinational enterprises: a structural equation approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(3), pages 769-795, May.
    10. Feldman, Maryann P. & Kogler, Dieter F., 2010. "Stylized Facts in the Geography of Innovation," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 381-410, Elsevier.
    11. Herstad, Sverre J. & Aslesen, Heidi Wiig & Ebersberger, Bernd, 2014. "On industrial knowledge bases, commercial opportunities and global innovation network linkages," Research Policy, Elsevier, vol. 43(3), pages 495-504.
    12. Marina Van Geenhuizen & Pieter Stek, 2015. "Mapping innovation in the global photovoltaic industry: a bibliometric approach to cluster identification and analysis," ERSA conference papers ersa15p697, European Regional Science Association.
    13. Thomas J. Hannigan & Alessandra Perri & Vittoria Giada Scalera, 2016. "The Dispersed Multinational: Does Connectedness Across Spatial Dimensions Lead to Broader Technological Search?," Working Papers 11, Venice School of Management - Department of Management, Università Ca' Foscari Venezia.
    14. V. Rekers, Josephine, 2012. "The European Spallation Source (ESS)and the geography of innovation," Papers in Innovation Studies 2012/9, Lund University, CIRCLE - Centre for Innovation Research.
    15. Ricardo Rodrigues & Carlos Sampaio & Paulo Duarte & José Manuel Hernández-Mogollón, 2022. "Cross-Border Innovation: Assessing Concepts, Contexts, and Content," Sustainability, MDPI, vol. 14(23), pages 1-18, November.
    16. Heidi Wiig Aslesen & Roman Martin & Stefania Sardo, 2019. "The virtual is reality! On physical and virtual space in software firms’ knowledge formation," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 31(9-10), pages 669-682, October.
    17. McCarthy, Killian J. & Aalbers, Hendrik Leendert, 2016. "Technological acquisitions: The impact of geography on post-acquisition innovative performance," Research Policy, Elsevier, vol. 45(9), pages 1818-1832.
    18. Zhaleh Najafi-Tavani & Axèle Giroud & Rudolf R. Sinkovics, 2012. "Mediating Effects in Reverse Knowledge Transfer Processes," Management International Review, Springer, vol. 52(3), pages 461-488, June.
    19. van der Wouden, Frank & Youn, Hyejin, 2023. "The impact of geographical distance on learning through collaboration," Research Policy, Elsevier, vol. 52(2).
    20. Thomas Hutzschenreuter & Tanja Matt, 2017. "MNE internationalization patterns, the roles of knowledge stocks, and the portfolio of MNE subsidiaries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(9), pages 1131-1150, December.

    More about this item

    Keywords

    Global innovation network; MNC; Geographical proximity; Organisational proximity; Social network analysis;
    All these keywords.

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:lucirc:2014_016. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Torben Schubert (email available below). General contact details of provider: https://edirc.repec.org/data/circlse.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.