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Uncovering the role of cross-border strategic alliances and expertise decision centralization in enhancing product-service innovation in MMNEs
Authors:Ferran Vendrell-Herrero  Emanuel Gomes  Oscar F Bustinza  Kamel Mellahi
Institution:1. Birmingham Business School, University of Birmingham, United Kingdom;2. Nova School of Business and Economic, Universidade Nova, Portugal;3. Department of Management, University of Granada, Spain;4. Warwick Business School, University of Warwick, United Kingdom
Abstract:Research is needed on effective servitization by multinational enterprises. This study examines whether Manufacturing Multinational Enterprises (MMNEs) can obtain better servitization outcomes by partnering with Knowledge Intensive Business Service (KIBS) firms and or by internationalizing their service function. In addition, the paper analyses the centralization of management decisions of human resources as an organizational mechanism to overcome coordination failure between product and service units. Our primary research data contain survey responses from 285 MMNEs collected in cooperation with an industry partner. Results show that cross-border strategic alliances and expertise decision centralization are critical to enhance product-service innovation.
Keywords:International partnerships  Cross-border alliances  Servitization  Product-service innovation  Human resources  Expertise decision centralization
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