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BAR - Brazilian Administration Review

versão On-line ISSN 1807-7692


BOEHE, Dirk Michael. The influence of coordination mechanisms on new product development in MNC subsidiaries. BAR, Braz. Adm. Rev. [online]. 2010, vol.7, n.1, pp.79-97. ISSN 1807-7692.

This paper investigates the relationship between [MNC] coordination mechanisms and subsidiary new product development [NPD] activities. We focus on two essentially different coordination mechanisms, internal markets and global decision-making autonomy, and argue that both mechanisms are likely to increase a subsidiary's exposure to market forces which, in turn, provides different kinds of incentives for a subsidiary's in-house NPD and NPD outsourcing. We tested our hypotheses using structural equations modeling. The results suggest that internal markets have a positive effect on NPD outsourcing while global autonomy has a positive effect on inhouse NPD. Thus, this study contributes to integrating the internal market construct with the coordination mechanism stream of literature.

Palavras-chave : multinational corporations [MNC]; global strategy; subsidiary coordination; internal markets; outsourcing.

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