Multinationals and the internationalization of R&D: New developments in German companies

Abstract

Studies on R&D internationalization have identified the decentralization-recentralization pattern of many multinational corporations (MNCs). Studies have also indicated that MNCs tend to pursue a transnational emphasis during R&D recentralization. This research focuses on recentralization of new product development (NPD) in MNCs and aims to reveal different processes of it towards a transnational emphasis. Through a qualitative case study of four MNCs, the NPD recentralization process was explored in two important dimensions – power centralization and pluralistic input. Four process variants were discovered, showing different approaches to power centralization and pluralistic input. The processes of recentralization are novel to the area of R&D internationalization. This study also advances our understanding of R&D recentralization with a focus on NPD fulfilling market demand, which has not been well addressed in prior studies. In addition, this study generates some insights into transnational management.