Title: An R&D management model for MNCs' subsidiaries: an empirical study of European affiliates in Taiwan

Authors: Kuo-Jen Su

Addresses: Business Administration Department, I-Shou University, 1, Section 1, Hsueh-Cheng Road, Ta-Hsu Hsiang, Kaohsiung County 84008, Taiwan

Abstract: This study constructs a research and development (R&D) management model for European multinational corporations| (MNCs) subsidiaries in Taiwan. First of all, it reviews relevant literature, and then develops the research framework, which includes R&D strategies, R&D management mechanisms, and R&D effectiveness in formulating the research inventory and five basic hypotheses. A survey of 156 R&D employees from European subsidiaries in Taiwan was implemented, and LISREL and hierarchy regression analysis were utilised to verify the R&D model and effectiveness forecasting equations. Results show that a combination of active R&D strategy, and four kinds of R&D management mechanisms significantly explain 61% of the variation of R&D effectiveness. In the meantime, conclusions also indicate that European affiliates in Taiwan take R&D autonomy and utilisation of local resource in subsidiaries into consideration and through global communication, a balance of global integration with the parent company and local responsiveness of subsidiaries can be reached.

Keywords: R&D strategies; R&D management; R&D effectiveness; multinational corporations.

DOI: 10.1504/IJMDM.2002.002483

International Journal of Management and Decision Making, 2002 Vol.3 No.3/4, pp.353-369

Published online: 18 Jul 2003 *

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