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Project 1: Managing Foreign R&D Labs in China

This project focuses on the management of R&D units established by foreign companies in China, investigating R&D missions, site build-up, integration with the parent organizations, and overall performance measurement. The research is based on 37 qualitative expert interviews with local R&D directors and managers conducted between 2001 and 2004, using a semi-structured research questionnaire, and semi-quantitative research done on 199 foreign R&D labs in China. Cultural influences on R&D management, location advantages, expatriate involvement, and organizational evolution of local laboratories are discussed. We find that foreign R&D laboratories in China are not only important vehicles for local market development but also increasingly important sources of locally developed technology.

Researcher: Max von Zedtwitz

Project 2: Motivation and Barriers of Foreign R&D Activities in China

The continued growth of the Chinese economy accompanied with the expansion of international investment in China has led to an increase in foreign research and development (R&D) activities in the country. Aside from the rising importance of R&D internationalization, research on foreign R&D in China has been neglected in the past due to its emerging status. In this project we examine drivers and barriers for conducting R&D in China. The focus of our research is on transnational companies typically characterized by decentralized R&D activities. Our research is mainly based on qualitative interviews with senior R&D managers. The success of foreign R&D activities in China strongly depends on the realistic estimation of its advantages and the proper identification and handling of barriers.

Researchers: Oliver Gassmann, Zheng Han

Project 3: What is the Role of the Technology Recipient in Developing Countries?

Technology transfer (TT) is one of the most important methods to develop technological capabilities (TC) at the firm level, particularly for firms in less developed countries. It is widely accepted that technology suppliers, in particular transnational companies (TNCs), play a key role in the TT process, especially in the process of technology transfer mode selection. However, certain technology transfer practices observed in Chinese manufacturing firms appear to be in disagreement with previous theories of the role of technology recipients in the TT process. They indicate that technology recipients have more important effect in the technology transfer mode selection than previously assumed.
    Our study focuses on three manufacturing firms in the Chinese mobile telephony industry. Based on qualitative case research we identify candidate situations in which the role of technology recipients in the process of technology transfer is dominant. We analyze the possible reasons for this role change, such as the firm’s strategy, existing competences, and marketing advantages. We conclude with a direction of future research and the implication for the management of technology transfer.

Researchers: Jun Jin, Max von Zedtwitz

Project 1: International R&D in Companies from Developing Countries

Traditionally, international R&D is a phenomenon of firms originating from advanced countries such as North America, Europe, and Japan. Based on the analysis of 1269 R&D locations, a new research framework is proposed that accounts for the increasing share of R&D toward or from developing countries. Investigating technology-intensive Chinese firms, motivations, strategies, and barriers to R&D internationalization are analyzed. The project develops two concepts of international R&D: “innovation capability enhancing” and “innovation capability exploiting”, respectively, denoting superimposed networks that allow the absorption and implementation of new technologies.

Researchers: Max von Zedtwitz, Li Que

Project 2: Organizing Global R&D: Challenges and Dilemmas

After more than a decade of widespread global R&D expansion, top managers in multinational companies take decentralized competencies for granted, expecting their international research and product development functions to deliver results. However, based on more than 150 in-depth interviews and case research carried out with 18 multinational companies from three industry groups between 1996 and 2000, we have identified six fundamental dilemmas that make it difficult even for companies with carefully managed distributed R&D networks to exploit the full potential of global innovation. In addition to a root-problem analysis, we surveyed these companies about the drivers of R&D globalization, and how these drivers would affect their organizations over the next ten years. Although some of the trends that emerged are industry-specific with regard to technology development, we describe five common traits that are expected to shape R&D organization in the mid-term future.

Researchers: Max von Zedtwitz, Oliver Gassmann, Roman Boutellier

Project 3: Insourcing Creativity with Listening Posts in Decentralized Firms

Technological listening posts as a means of technological knowledge sourcing were observed to be a widespread empirical phenomenon in centers of technological excellence and innovation clusters. Our research is based on 55 semi-structured interviews with 12 technology-intensive companies and 6 benchmarking-workshops on external knowledge sourcing with 11 companies. We reveal three archetypes of listening posts: trend scout, technology outpost and matchmaker. We describe their respective mission, organizational structure and critical success factors. Each type is illustrated with case studies.

Researchers: Oliver Gassmann, Berislav Gaso

Project 1: Does Technology Influence Management Localization Decisions in MNCs?

The literature on management localization is rich and mature, but generally neglects to investigate the role of technology in making the localization decision. In the last twenty years technology and R&D has become more global, and thus provides a basis for testing the role of technology in HR localization. Our research question thus is: Does technology influence management localization decisions in multinational companies? Our research is motivated by the observation that technology is often a source of competitive advantage for MNCs and thus is tightly protected and controlled, which is best done by maintaining an expatriate senior management, while another observation leads to the conclusion that technology is exploited best only if the company is well integrated within the local scientific and engineering community, which is best done by localizing senior management.
    Our research focuses on MNCs with subsidiaries in China because of its eminence as a FDI attractor. Based on a literature review, we first identify shortcomings in the localization and technology management literature before proposing hypotheses and measurements for testing these hypotheses. We then analyze and discuss our findings from qualitative interview-based and quantitative survey-based research conducted in China between Summer 2003 and Winter 2004. Our (initial) findings suggest that the correlation between technology-intensity and management localization depends on the specific mission of the subsidiary within the host community as well as towards the parent company.
 

Researchers: Max von Zedtwitz, Peipei Li, Serena Rovai