BU491 Lecture 5: Ch5
Document Summary
Local for local innovation model- relies on subsidiary based knowledge development. Responding to perceived local opportunities, subsidiaries use their own resources and capabilities to create innovative responses that are then implemented in the local market. Regardless of the model used, the challenges facing these companies are to overcome limitations and vulnerabilities built into their dominant process of cross border innovation. Mnes required an entirely different set of skills to master what we call transnational innovation capabilities. Making central innovations effective- greatest risk is market insensitivity and accompanying resistance of local subsidiary managers to what they may view as inappropriate new products and processes. Making local innovations effective local for local innovations suffer from needless differentiation caused by resource rich subsidiaries trying to protect their independence and autonomy. Building a portfolio of innovative processes to drive worldwide learning requires that companies overcome two related by different problems.
