TitleChanging innovation roles of foreign subsidiaries from the manufacturing industry in China
Publication Type03. Journal Papers
Year of Publication2016
AuthorsZhou, W., Velamuri V. K., & Dauth T.
JournalInternational Journal of Innovation Management
Date Published06/2016
KeywordsChina, Innovation, Manufacturing Industry, Multinational Companies, organizational change, Subsidiary

Based on the observation of higher internationalization of innovation activities of multinational companies towards emerging markets, this paper aims to provide insights on how foreign subsidiaries from the manufacturing industry are changing their innovation roles in China. Based on in-depth expert interviews conducted from the subsidiary perspective in China, this paper affirms that foreign subsidiaries are moving towards higher innovative activities. The study contributes to extant literature by revealing three characteristics, namely innovation capabilities, organizational structures, and interaction with the headquarters that differentiate subsidiaries‟ innovation roles with regards to their geography and magnitude of innovation. This study illustrates how these distinctive characteristics and their underlying elements advance as subsidiaries move towards greater innovation roles and discusses implications for managerial practice.