Two dimensions of the evolution process by R&D subsidiaries in MNCs: comparative analysis of Coca-Cola and 3M in Japan
by Kazumi Tada; Masahiro Ida
International Journal of Services Technology and Management (IJSTM), Vol. 27, No. 4/5/6, 2021

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.

Online publication date: Thu, 14-Oct-2021

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