Resource allocations, knowledge network characteristics and entrepreneurial orientation of multinational corporations |
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| Authors: | Christopher Williams Soo Hee Lee |
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| Institution: | aStrategy and Marketing Section, Amsterdam Business School, Universiteit van Amsterdam, Plantage Muidergracht 12, 1018 TV Amsterdam, The Netherlands;bDepartment of Management, Birkbeck College, University of London, Malet Street, London WC1E 7HX, United Kingdom |
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| Abstract: | This paper analyses entrepreneurial orientation (EO) in multinational corporations (MNCs) and develops a new typology of MNC EO based on combining R&D and asset growth investment intensities as orthogonal resource allocations. A cluster analysis of US MNCs on these two dimensions reveals three types of entrepreneurial stance: conservative, aggressive-asset growth and balanced. Internal knowledge network characteristics are shown to vary by stance, with more aggressive stances linked to knowledge governance supportive of the entrepreneurship process. In linking entrepreneurial orientation to the knowledge network of the MNC, this paper identifies factors important to the strategic management and on-going renewal of MNCs. In addition, the vector of R&D investment vs. asset growth investment is an indicator of entrepreneurial aggression and presents a new method of understanding the international strategies of MNCs. |
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| Keywords: | Multinational corporation Entrepreneurial orientation Resource allocation Knowledge network |
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