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Category: Business and Industry
Date Submitted: 09/03/2011 10:08 AM
Effective Subsidiary implementation takes time because according to Ajax Persaud, Uma Kumar,Vinod Kumar.2002,59
One outcome of establishing globally dispersed
R&D labs is that coordination becomes more difficult
due to geographic, time, and cultural differences.
Advances in information and communications technologies
have helped to mitigate some of the coordination
difficulties. Nonetheless, significantly more time and
resources are needed to achieve effective coordination,
compared to the traditional approach in which R&D is
centralized at the headquarters.
Therefore good communication is important as
Within globally dispersed R&D labs,
in both the theoretical and empirical literature on
innovations (Tushman & Anderson, 1997)
common values have to be shared 61
Socialization emphasizes the creation of common
and shared understandings of goals, values, and practices
to influence both how subsidiary labs perceive their
interests and how they act. It is the process by which
organizational members learn the value system, norms,
and required behaviours of the organization
Recommendations?
Autonomous labs also have the flexibility to cooperate
with other R&D labs within their group and to share
information and expertise, thereby improving their innovative
capabilities
Ref:
Persaud, Ajax, Uma Kumar and Vinod Kumar.2002. “Coordination Structures and Innovative
Performance in Global R&D Labs” Canadian Journal of Administrative Sciences 19(1). 57-75
Difference in cultures affecting subsidiaries
n Vol. 6, no. 4 of NRMJ, Guest and Hoque (1996) examine differences in the HR practices
of German, US and Japanese greenfield subsidiaries in Britain. The authors’ empirical
analysis, based on survey data, starts from the notion that ‘national cultures’ are
different ’and that this is manifested in the organisational cultures which are then
communicated to overseas subsidiaries
Depends on adaptation
This...