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R&D initiatives of foreign-owned subsidiaries and impact of global strategy penetration.

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Title: R&D initiatives of foreign-owned subsidiaries and impact of global strategy penetration.
Authors: Furusawa, Masaaki1 (AUTHOR) furusawa.masaaki.p3@dc.tohoku.ac.jp, Ishida, Shuichi1 (AUTHOR)
Source: Innovation: Organization & Management. Aug2026, Vol. 28 Issue 3, p509-529. 21p.
Subjects: Research & development projects, Foreign subsidiaries, Strategic planning, Structural equation modeling, Transborder data flow, International business enterprises
Geographic Terms: Japan
Abstract: There is a substantial body of research examining the strategic initiatives of foreign-owned research and development (R&D) subsidiaries, the penetration of global R&D strategies originating from headquarters, and cross-border information-sharing mechanisms about R&D performance outcomes. However, few studies have quantitatively analysed the relationships among these variables or assessed how each variable affects subsidiary R&D performance. This study develops a performance model for foreign-owned R&D subsidiaries by focusing on three key aspects. First, it quantitatively models the interactions among variables that have rarely been examined together in prior research. Second, it applies this model to Japan – a host country with distinctive technological and institutional characteristics that are often underrepresented in the literature. Third, it challenges conventional assumptions by deviating from the classical integration – responsiveness framework and re-evaluating the presumed benefits of cross-border information sharing. Findings from structural equation modelling suggest that proactive subsidiary R&D initiatives and unique strategies, particularly those involving high R&D initiatives and low penetration of headquarters strategies, are positively associated with R&D performance. In contrast, in multinational corporations, centralised R&D structures and globally standardised strategies may hurt subsidiary performance. Theoretical implications of the study suggest that cross-border information-sharing models between headquarters and subsidiaries can negatively affect R&D performance, highlighting the need to explore alternative frameworks. [ABSTRACT FROM AUTHOR]
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Database: Engineering Source
Description
Abstract:There is a substantial body of research examining the strategic initiatives of foreign-owned research and development (R&D) subsidiaries, the penetration of global R&D strategies originating from headquarters, and cross-border information-sharing mechanisms about R&D performance outcomes. However, few studies have quantitatively analysed the relationships among these variables or assessed how each variable affects subsidiary R&D performance. This study develops a performance model for foreign-owned R&D subsidiaries by focusing on three key aspects. First, it quantitatively models the interactions among variables that have rarely been examined together in prior research. Second, it applies this model to Japan – a host country with distinctive technological and institutional characteristics that are often underrepresented in the literature. Third, it challenges conventional assumptions by deviating from the classical integration – responsiveness framework and re-evaluating the presumed benefits of cross-border information sharing. Findings from structural equation modelling suggest that proactive subsidiary R&D initiatives and unique strategies, particularly those involving high R&D initiatives and low penetration of headquarters strategies, are positively associated with R&D performance. In contrast, in multinational corporations, centralised R&D structures and globally standardised strategies may hurt subsidiary performance. Theoretical implications of the study suggest that cross-border information-sharing models between headquarters and subsidiaries can negatively affect R&D performance, highlighting the need to explore alternative frameworks. [ABSTRACT FROM AUTHOR]
ISSN:14479338
DOI:10.1080/14479338.2025.2550360