This paper investigates the relationship between [MNC] coordination mechanisms and subsidiary new product development [NPD] activities. We focus on two essentially different coordination mechanisms, internal markets and global decision-making autonomy, and argue that both mechanisms are likely to increase a subsidiary's exposure to market forces which, in turn, provides different kinds of incentives for a subsidiary's in-house NPD and NPD outsourcing. We tested our hypotheses using structural equations modeling. The results suggest that internal markets have a positive effect on NPD outsourcing while global autonomy has a positive effect on inhouse NPD. Thus, this study contributes to integrating the internal market construct with the coordination mechanism stream of literature. © 2010 Brazilian Administration Review.
CITATION STYLE
Boehe, D. M. (2010). The influence of coordination mechanisms on new product development in MNC subsidiaries. BAR - Brazilian Administration Review, 7(1), 79–97. https://doi.org/10.1590/S1807-76922010000100006
Mendeley helps you to discover research relevant for your work.