S-WoPEc
 
Scandinavian Working Papers in Economics
HomeAboutSeriesSubject/JEL codesAdvanced Search
Department of International Economics and Management, Copenhagen Business School Working Paper Series, Department of International Economics and Management, Copenhagen Business School

No 13-1999:
How Foreign Subsidiaries Develop into Integrated Competence Centres

Jens Gammelgaard

Abstract: Foreign subsidiaries acting as "integrated competence centres" is an organizational design that improves the building of capabilities in multinational corporations. In this knowledge-creating process the headquarter uses a bottom-to-top strategy, where the initial competence-building starts in independent and autonomous subsidiaries, exploiting their internal learning processes and relations to local advanced customers and science centres. The purpose of the subsidiary is to develop basic designs of future competitive products. The headquarter assigns mandates and resources for further development of the competence so it qualifies for global sales exploitation. After gaining a mandate the subsidiary concentrates its R&D within a focused area. Central monitoring systems and corporate socialization mechanisms secure the possibility of intra-organizational integration and utilization of competences. Further, knowledge transfers within the corporation help the competence centre with its product development. A case study of two foreign-owned Danish high technology subsidiaries test the approach. Both companies build up competence in focus areas, and use intra-organisational instruments to integrate knowledge. However, they differ in their historical background and how they gain the mandate for further competence development.

Keywords: subsidiaries; competence; organizational design; multinational corporations; knowledge; learning; R&D; Denmark; (follow links to similar papers)

28 pages, May 30, 1999

Before downloading any of the electronic versions below you should read our statement on copyright.
Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.

Full text versions of the paper:

6543    PDF-file
Download Statistics

Questions (including download problems) about the papers in this series should be directed to Lars Nondal ()
Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design by Joakim Ekebom

Handle: RePEc:hhb:cbsint:1999-013 This page was generated on 2014-12-14 19:16:02