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Chapter 5: Creating Worldwide Innovation and Learning: Exploiting Cross-Border Knowledge Management by Mind Map: Chapter 5: Creating Worldwide Innovation and Learning: Exploiting Cross-Border Knowledge Management
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Chapter 5: Creating Worldwide Innovation and Learning: Exploiting Cross-Border Knowledge Management

R&D is becoming more important than ever

As MNE's have matched each other in production efficiency and local responsiveness, the battle has turned towards innovation

Traditional Innovation

Center-for-Global

new opportunity is sensed in home country and developed there as wellafterwards it is introduced internationally through subsidiaries -Gain input of subsidiaries into centralized activities -Ensure all functional tasks are linked to market needs

Local-for-Local

subsidiaries sense local opportunities and create their own solutionsPrerequisites are the splitting up of resources and the delegation of authority

Transnational Innovation

Locally Leveraged

Special resources and capabilities of each national subsidiary are available to other units as well Product developed by one unit is sold by others as well if that is beneficial

Globally Linked

Combine resources from center and subsidiaries Take idea from A, expertise from B and scarce resource from C or Ideas from A, B and C or any mixture to create product that is then distributed to all

Often blocked by

Simplifying, subconscious rules

Important Flows

Flow of Goods

complex connections through which units source their supplies and materials, link flows of components and subassemblies and distribute finished goods

Flows of financial, human and technological resources

represents the major strategic choices the company makes and therefore must be controlled at corporate level

Flow of strategic information and proprietary knowledge

Mobilizing knowledge

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