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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]
Copyright of Innovation: Organization & Management is the property of Taylor & Francis Ltd and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
Database: Engineering Source
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Header DbId: egs
DbLabel: Engineering Source
An: 195593311
AccessLevel: 6
PubType: Academic Journal
PubTypeId: academicJournal
PreciseRelevancyScore: 0
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  Data: R&D initiatives of foreign-owned subsidiaries and impact of global strategy penetration.
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  Data: <searchLink fieldCode="AR" term="%22Furusawa%2C+Masaaki%22">Furusawa, Masaaki</searchLink><relatesTo>1</relatesTo> (AUTHOR)<i> furusawa.masaaki.p3@dc.tohoku.ac.jp</i><br /><searchLink fieldCode="AR" term="%22Ishida%2C+Shuichi%22">Ishida, Shuichi</searchLink><relatesTo>1</relatesTo> (AUTHOR)
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  Data: <searchLink fieldCode="JN" term="%22Innovation%3A+Organization+%26+Management%22">Innovation: Organization & Management</searchLink>. Aug2026, Vol. 28 Issue 3, p509-529. 21p.
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  Data: <searchLink fieldCode="DE" term="%22Research+%26+development+projects%22">Research & development projects</searchLink><br /><searchLink fieldCode="DE" term="%22Foreign+subsidiaries%22">Foreign subsidiaries</searchLink><br /><searchLink fieldCode="DE" term="%22Strategic+planning%22">Strategic planning</searchLink><br /><searchLink fieldCode="DE" term="%22Structural+equation+modeling%22">Structural equation modeling</searchLink><br /><searchLink fieldCode="DE" term="%22Transborder+data+flow%22">Transborder data flow</searchLink><br /><searchLink fieldCode="DE" term="%22International+business+enterprises%22">International business enterprises</searchLink>
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  Data: <searchLink fieldCode="DE" term="%22Japan%22">Japan</searchLink>
– Name: Abstract
  Label: Abstract
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  Data: 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]
– Name: AbstractSuppliedCopyright
  Label:
  Group: Ab
  Data: <i>Copyright of Innovation: Organization & Management is the property of Taylor & Francis Ltd and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.)
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RecordInfo BibRecord:
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    Identifiers:
      – Type: doi
        Value: 10.1080/14479338.2025.2550360
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      – Code: eng
        Text: English
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        PageCount: 21
        StartPage: 509
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      – SubjectFull: Research & development projects
        Type: general
      – SubjectFull: Foreign subsidiaries
        Type: general
      – SubjectFull: Strategic planning
        Type: general
      – SubjectFull: Structural equation modeling
        Type: general
      – SubjectFull: Transborder data flow
        Type: general
      – SubjectFull: International business enterprises
        Type: general
      – SubjectFull: Japan
        Type: general
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      – TitleFull: R&D initiatives of foreign-owned subsidiaries and impact of global strategy penetration.
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            NameFull: Furusawa, Masaaki
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            NameFull: Ishida, Shuichi
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            – D: 01
              M: 08
              Text: Aug2026
              Type: published
              Y: 2026
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              Value: 28
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            – TitleFull: Innovation: Organization & Management
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