Right person in the right place: How the host country IPR influences the distribution of inventors in offshore R&D projects of multinational enterprises

Research summary : Prior work has shown that the strength of the intellectual property regime (IPR) in a host country influences offshore R&D to that country. Building on this work we propose that the strength of the IPR in a host country differentially influences the threat of knowledge leakage on projects that are produced for the location where the multinational firm is headquartered (home) versus the offshore location to which the R&D project is sent (host). We argue and show that when the host location has a weak IPR, fewer host inventors are involved in host R&D projects when compared to home R&D projects. We test our hypotheses using a dataset of patents held by US assignees, but coinvented in 43 host locations with differing IPR strength. Managerial summary : Multinational enterprises often cite the weak IPRs at emerging economy host destinations as a significant impediment to offshore R&D activities in those countries, despite the abundant supply of inexpensive scientific talent there. We find that the weak IPR at the host destination is a greater impediment to offshore R&D that is aimed for end use at the host market than for R&D that is aimed for end use globally or in the home market. Since IPRs are local, a weaker IPR at the host location does not protect IP that is relevant to the host market. Since the IPR at the home country is more relevant for technologies aimed at the home market, the IPR at the host country is irrelevant for such R&D projects. Copyright © 2015 John Wiley & Sons, Ltd.     

Pursuing opportunities in distance: the determinants of overseas R&D by Chinese multinationals

This study investigates two relevant dimensions of institutional distance – knowledge and economic distance – that influence the overseas research and development (R&D) intensity of emerging market multinational enterprises. We undertake a longitudinal analysis of 121 listed Chinese manufacturing multinational enterprises for the period 2011–2016. The results reveal that the enterprises' overseas R&D is more intense in host countries with greater knowledge and economic distance. Moreover, as the strength of intellectual property rights protection in host countries grows, the positive effects of knowledge and economic distance on the enterprises' overseas R&D intensity become weaker. We also find that political ties with home country governments strengthen the positive relationship between knowledge distance and the enterprises' overseas R&D intensity, while its moderating effect on the relationship between economic distance and overseas R&D intensity is insignificant.     

Innovation in multinational corporations: control and communication patterns in international R&D operations

This paper addresses issues of global innovation in multinational corporations by examining the patterns of communication and control in international R&D operations. Using a sample of 110 international R&D units from 15 multinational corporations, we identify three types of R&D unit role (local adaptor, international adaptor, international creator). We show that: (1) each type of R&D unit is managed primarily through a different mode of control; (2) local and international adaptors both focus their communication on their internal corporate network; and (3) international creators have strong internally and externally oriented networks of relationships. The implications for the management of global innovation are discussed. © 1998 John Wiley & Sons, Ltd.     

Pricing policies of multinational enterprises : Host country regulation and welfare

This paper examines host country price-regulation policies towards a foreign subsidiary. The analysis considers two prices, namely the transfer prices charged to the subsidiary, and the market price of the subsidiary's products. It is shown that host countries should regulate both of these prices. Regulation of the transfer price alone may induce an increase in the subsidiary's market price and cause a loss of host country welfare. Regulation of both prices is more efficient for it enables the host country to attain a higher level of welfare and allows the foreign firm to earn the same level of profits as would regulation of only one of those prices.     

R&D networks and innovation: decentralised product development in multinational enterprises

This paper documents the ways in which overseas R&D in MNEs now plays roles in what are innovative new approaches to innovation itself. Networks of laboratories are seen as supporting both the short-term and long-term competitive evolution of the MNE group's globally-effective product innovation.
In terms of the immediate commercial application of new products for global markets it is argued that product development labs work within creative overseas subsidiaries in MNEs. These aim to derive variants of the new product that fully meet the distinctive needs of each key regional market.
Another separate network of decentralised MNE labs carry out precompetitive (basic or applied) research, embodying particular areas of technological comparative advantage of their host countries. This network of labs therefore provides inputs into a centrally-articulated programme whose objective is to provide the basis of the longer-term technological evolution of the MNE, by upgrading the core knowledge from which future generations of innovative products can emerge.     

Religiosity,spirituality and ethical decision-making: Perspectives from executives in Indian multinational enterprises

Through a semi-structured interview with 40 senior executives from Indian multinational enterprises (MNEs), we use virtue ethics theory to examine the types of virtues that are promulgated by religiosity and spirituality in shaping ethical behavior. The responses were coded in NVivo and the themes and concepts were organized into four categories (e.g., environmental context, individual religious virtues, individual non-religious spiritual virtues, and organizational ethical virtues). These categories contributed to ethical decision-making. The findings suggest that it is critical to understand ethical decision-making by identifying virtues that are important in religious, spiritual, and humanistic contexts in countries such as India, which are religiously and spiritually diverse. The study findings assist in the development of a framework of ethical decision-making that can be used for further empirical testing across both non-Western and Western contexts in multi-faith populations. Several theoretical, practical, and methodological contributions are presented along with suggestions for future research.     

An analysis of the intra-firm sales activities of Japanese multinational enterprises in the United States: 1977 to 1989

This paper examines the activities of the largest Japanese multinational enterprises (MNEs) operating in the United States by looking at data on exports, imports, and intra-firm trade between the Japanese subsidiaries in the United States and their parent and other foreign groups. It also examines how much of the domestic sales in the United States are accounted for by local production of the Japanese subsidiaries. Sales data provide an indication of the advantages of being multinational, which are mirrored in the growth of the post-investment sales of overseas units (both manufacturing and non-manufacturing). Data on the flows and stocks of foreign direct investment (FDI) represent the initial decisions to undertake FDI and largely ignore the learning effects of having overseas production.The authors are from the City University of Hong Kong and NORTACK Software Limited. We would like to thank the Editor, Dr Leung Hing-Man, the anonymous referees, and Don Daly, Wendy Dobson, Hiroaki Izumi, Terutomo Ozawa, Alan M Rugman and Rob Tran for their helpful comments. All errors and omissions, however, remain the responsibility of the authors.     

Financial performance and survival of multinational corporations in China

This study investigates the impact of entry timing, mode of entry, market focus, and location advantages on the financial performance and survival of multinational corporations (MNCs) in China. Three major results were found. First, MNCs that entered China in an earlier year had a higher level of profit than those that entered in a later year. Second, equity joint ventures (EJVs) had a higher profit level than cooperative operations or wholly foreign‐owned subsidiaries. Third, MNCs that utilized well the location advantages in China had a higher profit. We also found that EJVs were more likely to survive compared to cooperative operations, while wholly owned subsidiaries did not differ from EJVs. The findings are based on a 2‐year study of about 1000 MNC operations in China. Copyright © 1999 John Wiley & Sons, Ltd.     

积极开拓 精心打造——对石化企业拓展海外市场若干问题的探讨

石化企业拓展海外市场具有重要的现实意义和深远的战略意义。首先，从世界来看，各国石化工业发展迅猛。西方发达国家、中东产油国的大公司、中国周边国家和地区的石化企业都瞄准了中国大陆市场，它们利用技术上的优势，实行国际化经营，向中国大陆市场渗透。随着中国加入世贸组织，这种状况将愈烈，国内市场空间将变得十分拥挤。因此，中国石化企业在大力巩固国内市场的同时，要利用加入世贸组织的契机，进军海外市场，以缓解国内市场面临的巨大压力。其次，从中国发展战略目标来看，到本世纪中叶，中国要步入世界中等发达国家行列，到妥时，从经济总量上讲，中国将步入世界经济强国之列，中国石化企业必须加大改革力度，进一步走出国门，积极参与国际竞争，这是实现中国第三步发展战略目标的重要途径。石化企业如何拓展海外市场，本就创一流流品、定价、选中间商、电子商务、创驰名商标等发表一点粗浅看法。     

我国企业兼并问题分析

在如今市场经济的激烈竞争中，企业要想快速成长，通过兼并是一有效途径。如何把握好企业兼并活动中的一些关键问题，是摆在企业兼并面前的主要问题。章从提供企业兼并活动中一些关键问题的把握，以便企业能吃上“馅饼”而不至于落如“陷阱”。     

The influence of clan culture on business performance in Asian private-owned enterprises: The case of China

The unique cultural phenomenon of Asia and the growth of Asian enterprises have attracted considerable academic attention in this domain. Clan culture is a typical part of Asian culture and represents a new field in the cultural study of management. Based on the statistical data from China's Annual Census on Industrial Enterprises 2007, this article discusses the influence of clan culture on the financial and social performance of private-owned enterprises (POEs). The results of this study show that the strength of clan culture inhibits the financial performance of POEs and improves social performance—i.e., the welfare of their internal employees; in addition, the degree of regional marketization and social trust can moderate this relationship. In summary, we illuminate the institutional logic that clan protection affects POE performance.     

国内外纸业巨头抢滩中国市场

今年以来，中国市场成为造纸企业活跃的大舞台，国外纸业巨头布局中国的企业相继投产，国内企业争上的项目接连上马。一场“没有硝烟的商战”在神州大地拉开序幕，一部充满悬念的“大片”在中国开机。中国再一次为世界所瞩目，中国造纸业将如何演绎？让我们共同关注，拭目以待……[编者按]     

Changing multinational corporation — nation state relationship: The case of IBM in India

During 1977, IBM was asked to withdraw from India due to its unwillingnesss to comply with the Foreign Exchange Regulation Act (FERA) of 1973. However, with (1) the signing of Memorandum of Understanding between the U.S. and India, (2) the easing of trade restrictions by the Government of India against foreign firms, (3) the declining value of the U.S. dollar, (4) the slump in the U.S. computer market, (5) the rapid growth in the Indian computer market, and (6) changes in other environmental factors, IBM again began actively seeking and securing new business. By the mid-1980s, IBM had secured a number of large contracts and was on the verge of re-entry into the burgeoning Indian computer market.The purpose of this study is to examine the underlying factors that influence both the divorce and reunification between host country government and the multinational corporation. The study, conducted through personal interviews with chief executives of IBM, government officials, and other knowledgeable persons, examines the social-political aspects of the FERA and its implications for multinationals in India and elsewhere in developing countries.     

Coordination of multinational R & D: A Swedish case study

The need to coordinate multinational R & D increases in many corporations which want to take advantages of scale, synergy and multinationality on a world-wide basis. The Swedish engineering corporation SKF has tackled this problem as an early internationalized but lately diversified corporation working in mature technologies and markets. Substantial coordination has been achieved through a heavy resource commitment in a foreign corporate R & D lab, and a subsequent build-up of a rather elaborate system for R & D management throughout the corporation. The structure and processes of the system are described, together with experiences of coordinating effects, and a project case is given. The chosen mode of coordination is finally compared with situations in other industries.     

Home-country institutions and corporate social responsibility of emerging economy multinational enterprises: The belt and road initiative as an example

This paper examines the impact of home country institutions on corporate social responsibility (CSR) of multinational enterprises from emerging markets (EM-MNEs). Taking the Belt and Road Initiative (BRI) as an example and using a sample with 2052 firm-year observations from China over the period 2008–2018, we find that the BRI exerts a positive and significant effect on overall CSR of Chinese MNEs involved in the BRI and the positive effect is stronger for Chinese state-owned MNEs. In addition, only two dimensions of CSR (Employee Relations and Products) are improved significantly under the pressure of BRI. Finally, we examine the interactive effect of home- and host- country institutions on Chinese MNEs’ CSR and find the positive impact of the BRI on MNEs’ CSR performance is stronger in host countries with a higher level of CSR related institutional pressure. These results provide practical suggestions for the Chinese government and MNEs to further improve CSR under the BRI, and enrich our understanding of the interactive effect between home- and host-country institutions on enhancing Chinese MNEs’ reputation and promoting regional cooperation with countries along the BRI.

     

区域工业企业R&D投入产出绩效的DEA评价及分析

为解释不同区域工业企业RD活动投入规模、结构和绩效之间的关系,找出区域工业企业RD活动的差异和特点,利用数据包络分析方法(DEA)的C2 R模型和BC2模型,构建了由2个投入指标和3个产出指标构成的区域工业企业RD投入产出绩效评价指标体系,运用详实的统计数据对2014年和2010年中国部分省市区工业企业的RD投入产出绩效进行了DEA测度及分析。结果表明,中国区域工业企业RD投入产出绩效的技术效率小于规模效率,各省市区工业企业RD投入产出绩效的技术有效性与规模有效性呈现很强的正相关关系。各省市区要根据自身的经济、技术基础,因地制宜地制定提高其工业企业RD投入产出绩效的有效对策。     

有朋自远方来:欧美在华包装协会一览

美国包装机制造协会PMMI；英国／JUT与包装机械协会PPMA；德国机械与设备制造商联合会食品加工和包装机械分会；意大利自动化包装机械制造商协会UCIMA；[编者按]     

R&D in China: an empirical study of Taiwanese IT companies

This study extends the research on R&D (research and development) internationalization to a new environmental context (two Asian newly-industrialized economies, mainland China and Taiwan). Based on a survey of 56 major Taiwanese information technology (IT) companies, the status of R&D internationalization with Taiwan as the home and mainland China as the host is investigated. Human-capital-augmentation is found to be the key motive for Taiwanese IT companies to extend R&D activities to the mainland. Accessing capable yet cost effective local engineers with an additional benefit of geographical and linguistic proximity is the major context of this motive. The location decision is based on three considerations – access to engineers, proximity to manufacturing site, and competition avoidance. Finally, three operational patterns of conducting the international design and development (D&D) activities are categorized, which are 'home-base-integration', 'host-base-integration', and 'product life cycle'.     

A contingent view of institutional environment,firm capability,and innovation performance of emerging multinational enterprises

Drawing on the institution theory and the resource-based view of the firm, we propose a contingent view on the relationship between host market's institutional environment, emerging multinational enterprises (EMNEs)’ capability, and their innovation performance in the internationalization process. Specifically, we examine three key aspects of host market's institutional environment: market maturity, intellectual property right protection, and cultural distance, to investigate their distinct impact on innovation performance. We further explore how the effects of institutional environment is contingent upon firm-specific absorptive capability. The analyses of a panel data of 735 Chinese EMNEs provide support for this contingent view, and the findings of this study thus can help advance our understanding of the internationalization process of EMNEs.     

柳工牵手波兰HSW：一起“未被张扬”的海外并购

2012年第一个月的最后一天，注定要成为中国工程机械行业发展史上的一个重要日子。这一天，三一重工和柳工同时发布了海外并购的消息，前者以27亿元坐拥世界混凝土机械头号种子普茨迈斯特，后者以3．55亿元牵手国际知名推土机制造商HSW。尽管在通过德国政府审查前就宣布并购成功的行为被指过于张扬，三一却成功地用“龙吞象”的传奇故事赢得了外界的极大关注。然而，风景不是一边独好，当柳工并购的大幕徐徐揭开，人们将看到一出千回百转的精彩大戏。