Title: Two dimensions of the evolution process by R&D subsidiaries in MNCs: comparative analysis of Coca-Cola and 3M in Japan

Authors: Kazumi Tada; Masahiro Ida

Addresses: Faculty of Social Sciences, Hosei University, 4342 Aihara Cho, Machida Shi, Tokyo 1940298, Japan ' Faculty of Management Information, Hannan University, 5-4-33 Amamihigashi Matsubara, Osaka, 5808502, Japan

Abstract: This study discusses the evolution process of R&D overseas subsidiaries that develop new global products within their own multinational companies. Based on a survey of prior studies, this study analysed the process of the results in product development activities (PDAs) by overseas subsidiaries, focusing on MNC and local environmental factors. In addition, we focused on two dimensions of PDAs: originality and geographical scope. We conducted a comparative analysis of the Coca-Cola Company's Japanese subsidiary (CCJC) and 3M's Japanese subsidiary (3MJ), both of which are one of the largest R&D subsidiaries in their groups. Consequently, we noted that MNC factors are likely to promote the expansion of geographical scope of PDA results, while the local environmental factors are likely to promote originality. Furthermore, we found that the influence of the parent company can suppress originality in PDA results. We believe that these findings will contribute to future research.

Keywords: overseas subsidiary; multinational company; product development; R&D; product development activities; PDA; evolution process; Coca-Cola; 3M; comparative analysis; local environment.

DOI: 10.1504/IJSTM.2021.10041658

International Journal of Services Technology and Management, 2021 Vol.27 No.4/5/6, pp.351 - 369

Received: 02 Jul 2019
Accepted: 11 Jan 2020

Published online: 14 Oct 2021 *

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