A double-network perspective on the evolution of subsidiary R and D role: A matter of dual embeddedness

Abstract

The International Business literature has recently sought to determine the drivers of R and D role changes in foreign subsidiaries over time. Yet, very few studies have examined network effects to explain this evolution. To fill this gap in the literature, the present work focuses on changes in subsidiary capabilities and on the dynamic mechanisms by which their R and D role might evolve, especially, as a consequence of their interaction with a variety of networks. Thus, the core aim of this paper is to summarize the findings from the previous literature as a first step for developing a general theoretical framework that integrates internal and external network embeddedness and to discuss its implications for the evolution in the R and D role of subsidiaries. The literature review highlights the need to investigate how subsidiary R and D roles evolve as a consequence of their being simultaneously engaged in both intra-organizational and local networks. © 2012 Springer-Verlag Berlin Heidelberg.