This thesis emphasizes the technological evolution of technologically advanced foreign subsidiaries of multinational corporations, in order to examine specific and related research questions as to what is the nature of the advanced modern MNC regarding technological growth. In particular, evolutionary paths and potential limits to the development of technological capabilities at the level of individual foreign subsidiaries, and to what extent these subsidiaries serve as significant sources of technological capabilities for other actors in the multinational group are highlighted. More specific, longitudinal patterns and pace in the emergence and diffusion of new technological capabilities by advanced foreign subsidiaries are studied.Event history analysis of the complete U.S. patenting activity of 23 Swedish multinationals over the 1893-1990 time period reveals accelerated emergence of new technological capabilities by advanced foreign subsidiaries, but at moderate hazard rates. The results also show that there are substantially different probabilities of introducing new technological capabilities depending on the type of entry mode and that acquired subsidiaries are much more important than greenfield subsidiaries as growth engines for the technological renewal of the MNC. Moreover, the findings suggest the presence of an increased pace in reverse diffusion, hence the later into the time period a technological capability emerges in an advanced foreign subsidiary, the faster it is diffused to headquarters. The results also demonstrate that the type of subsidiary has a significant influence on diffusion patterns of new technological capabilities and thus how capabilities are leveraged throughout the MNC network.To conclude, a balanced view on the creative capabilities of the MNC seems to be called for. The modern MNC does have and display many of the features of the modern…
Contents
MNCs AND THE ROLE OF ADVANCED FOREIGN SUBSIDIARIES
Open Questions
Specifying the Research Questions
How to read the Thesis
Outline of the Thesis
THEORETICAL BACKGROUND
Technology and Competitive Advantage
Technology in the MNC and the Emergence of Advanced Foreign Subsidiaries
Drivers behind Becoming Advanced
Acquired Advanced Foreign Subsidiaries
The Emergence of Technological Capabilities within the MNC
The Further Development of Technological Capabilities in Advanced Foreign Subsidiaries
Diffusion of Technological Capabilities within the MNC
Drivers behind Intra-MNC Technological Diffusion
Barriers of Intra-MNC Technological Diffusion
Capability Diffusion from Advanced Foreign Subsidiaries
THE RESEARCH DESIGN AND METHODOLOGY
Research Sample
Data Collection
Descriptive Statistics
Patents as Indicators of Technological Activity in Firms
Advantages of Patent Data
U.S. Patents
The Role of Firm Size
Industry differences
Value and Use of Patents
The Use of Patenting in the Current Thesis
Statistical Method
Event History Analysis
Single Events
The Kaplan-Meier Survival Analysis
The Cox Proportional Hazards Model
Multiple Events
The Andersen-Gill or AG Model
The Prentice, Williams, and Peterson or PWP model
Limitations of Event History Analysis
SUMMARY OF THE PAPERS
Paper I: Quo Vadis? The Entry into New Technologies in Advanced Foreign Subsidiaries of the Multinational
Corporation
Paper II: Growth Engines of the Multinational Corporation – A Longitudinal Study of the Drivers of Entry into New
Technologies in Foreign Locations
Paper III: Diffusion Patterns of Technological Capabilities within Multinational Corporations – Differences between
Greenfield and Acquired Advanced Foreign Subsidiaries
Paper IV: Reverse Diffusion of New Technological Capabilities to Headquarters from Foreign Advanced Subsidiaries
of Multinational Corporations
SUMMARY AND CONCLUSIONS
Empirical Findings
The Ultimate Limits of Technological Capabilities in Advanced Foreign Subsidiaries
Advanced Foreign Subsidiaries as Diffusers of Technological Capabilities within the MNC
Methodological Implications
Conceptual Implications
The Role of Foreign Advanced Subsidiaries in the Modern MNC
Managerial Implications
Future Research
REFERENCES
Author: Blomkvist, Katarina
Source: Uppsala University Library
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