Global Innovation in Foreign Subsidiaries: The Impact of Entrepreneurial Orientation and Corporate Networks

The article aims to show the differentiated moderating role of integration between the headquarters and subsidiary companies to explain the potential of local innovations becoming global innovations. Throughout the framework and hypotheses, we propose two global innovation development processes. In...

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Main Authors: Sidney Costa, Felipe Mendes Borini
Format: Article
Language:English
Published: FUCAPE Business School 2017-01-01
Series:BBR: Brazilian Business Review
Subjects:
Online Access:http://www.redalyc.org/articulo.oa?id=123051880004
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author Sidney Costa
Felipe Mendes Borini
author_facet Sidney Costa
Felipe Mendes Borini
author_sort Sidney Costa
collection DOAJ
description The article aims to show the differentiated moderating role of integration between the headquarters and subsidiary companies to explain the potential of local innovations becoming global innovations. Throughout the framework and hypotheses, we propose two global innovation development processes. In order to test them, we analyzed a sample of 172 subsidiaries from the structural equations technique to test the hypotheses and multiple-groups comparison in order to evaluate the moderating effect of subsidiaries embeddedness. The results confirm the adherence of a presented process: entrepreneurial orientation is associated with local innovation when moderated by embeddedness. In turn, this local innovation has great potential to become a global innovation. Another result diverged from the one presented in the hypotheses, but it has an important contribution. The result shows that the entrepreneurial orientation is associated with the inclusion of the subsidiary in the network, which has the potential of developing global innovation, but to do so it would have to be a radical or disruptive innovation.
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institution Kabale University
issn 1807-734X
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publishDate 2017-01-01
publisher FUCAPE Business School
record_format Article
series BBR: Brazilian Business Review
spelling doaj-art-5a6c42a7805144f78e7b37447214e17f2025-02-06T23:39:31ZengFUCAPE Business SchoolBBR: Brazilian Business Review1807-734X2017-01-01144417434Global Innovation in Foreign Subsidiaries: The Impact of Entrepreneurial Orientation and Corporate NetworksSidney CostaFelipe Mendes BoriniThe article aims to show the differentiated moderating role of integration between the headquarters and subsidiary companies to explain the potential of local innovations becoming global innovations. Throughout the framework and hypotheses, we propose two global innovation development processes. In order to test them, we analyzed a sample of 172 subsidiaries from the structural equations technique to test the hypotheses and multiple-groups comparison in order to evaluate the moderating effect of subsidiaries embeddedness. The results confirm the adherence of a presented process: entrepreneurial orientation is associated with local innovation when moderated by embeddedness. In turn, this local innovation has great potential to become a global innovation. Another result diverged from the one presented in the hypotheses, but it has an important contribution. The result shows that the entrepreneurial orientation is associated with the inclusion of the subsidiary in the network, which has the potential of developing global innovation, but to do so it would have to be a radical or disruptive innovation.http://www.redalyc.org/articulo.oa?id=123051880004innovation globalenterprise networkembeddednessentrepreneurial orientationsubsidiaries
spellingShingle Sidney Costa
Felipe Mendes Borini
Global Innovation in Foreign Subsidiaries: The Impact of Entrepreneurial Orientation and Corporate Networks
BBR: Brazilian Business Review
innovation global
enterprise network
embeddedness
entrepreneurial orientation
subsidiaries
title Global Innovation in Foreign Subsidiaries: The Impact of Entrepreneurial Orientation and Corporate Networks
title_full Global Innovation in Foreign Subsidiaries: The Impact of Entrepreneurial Orientation and Corporate Networks
title_fullStr Global Innovation in Foreign Subsidiaries: The Impact of Entrepreneurial Orientation and Corporate Networks
title_full_unstemmed Global Innovation in Foreign Subsidiaries: The Impact of Entrepreneurial Orientation and Corporate Networks
title_short Global Innovation in Foreign Subsidiaries: The Impact of Entrepreneurial Orientation and Corporate Networks
title_sort global innovation in foreign subsidiaries the impact of entrepreneurial orientation and corporate networks
topic innovation global
enterprise network
embeddedness
entrepreneurial orientation
subsidiaries
url http://www.redalyc.org/articulo.oa?id=123051880004
work_keys_str_mv AT sidneycosta globalinnovationinforeignsubsidiariestheimpactofentrepreneurialorientationandcorporatenetworks
AT felipemendesborini globalinnovationinforeignsubsidiariestheimpactofentrepreneurialorientationandcorporatenetworks