The Influence of Coordination Mechanisms on New Product Development in MNC Subsidiaries

Journal Title: BAR: Brazilian Administration Review - Year 2010, Vol 7, Issue 1

Abstract

This paper investigates the relationship between [MNC] coordination mechanisms and subsidiary new product development [NPD] activities. We focus on two essentially different coordination mechanisms, internal markets and global decision-making autonomy, and argue that both mechanisms are likely to increase a subsidiary’s exposure to market forces which, in turn, provides different kinds of incentives for a subsidiary’s in-house NPD and NPD outsourcing. We tested our hypotheses using structural equations modeling. The results suggest that internal markets have a positive effect on NPD outsourcing while global autonomy has a positive effect on inhouse NPD. Thus, this study contributes to integrating the internal market construct with the coordination mechanism stream of literature.

Authors and Affiliations

Boehe, Dirk Michael

Keywords

Related Articles

Theorizing ICT and Society in the Brazilian Context: a Multilevel, Pluralistic and Remixable Framework

In this paper we present a multilevel and pluralistic conceptual framework that is particularly useful for Brazilian researchers investigating information and communication technology (ICT) based social changes from a...

Rural Heritage of early Brazilian Industrialists: its Impact on Managerial Orientation

The understanding of modern management in peripheral countries does not take into account research into their historical background that has come a different route from the Anglo-Saxons. In this study we shall be analyz...

Brazilian Multinationals’ Ownership Mode: The Influence of Institutional Factors and Firm Characteristics

This work investigates whether host countries institutional factors and firm characteristics can help the understanding of Brazilian multinationals’ choices of ownership mode for their foreign direct investments (FDI)....

The Life Cycle of Small-firm Networks: An Evaluation of Brazilian Business Networks

Interorganizational agreements and cooperative business networks became an important strategy for companies facing competitive disadvantages. Specially small and medium firms adopted collaborative network models as a w...

Auditing Government-nonprofit Relations in the Brazilian Postreformist Context

Recent decades have been marked by a rising interaction between the State and nonprofits in order to address increasingly complex public issues. Government-nonprofit relations were guided by a complex and diverse legal...

Download PDF file
  • EP ID EP40462
  • DOI -
  • Views 273
  • Downloads 0

How To Cite

Boehe, Dirk Michael (2010). The Influence of Coordination Mechanisms on New Product Development in MNC Subsidiaries. BAR: Brazilian Administration Review, 7(1), -. https://europub.co.uk/articles/-A-40462