Organisational influences on innovation transfer in multinational corporations

Based on a sample of 186 innovation transfer cases within multinational corporations (MNCs), this research studies the influence of organisational features on transfer performance. We employ a broad business-network framework to analyse transfer performance. Relationships between the focal source unit (the innovating subsidiary) and other key actors in the transfer process, namely the recipient unit, MNC headquarters, and relevant external counterpart, are of our main concern. We analyse how these relationships influence transfer performance in terms of speed and cost. Empirical results indicate that previous cooperation and similarity between source and recipient accelerate the transfer to complete. Results further suggest that involvement from headquarters has slowed down the process and increased the cost substantially. On the contrary, the more autonomy subsidiary holds, the more likely it will transfer innovation quicker and cheaper.