Motivating proactive subsidiary innovation: Agent-based theory and socialization models in global R&D

William H.A. Johnson, John W. Medcof

Research output: Contribution to journalArticle

31 Scopus citations

Abstract

An integration of agency theory and socialization models is developed and used to explain the types of governance and organizational structures associated with self-initiated subsidiary innovation. This theorizing suggests that: 1) The hub structure is the greatest user of behavior-based contracting and engenders the fewest self-initiated innovations; 2) The federation structure is the greatest user of outcome-based contracting and engenders the most self-initiated innovations, but these are primarily oriented to business level strategy rather than corporate; and, 3) The network structure is the greatest user of goal internalization and is the strongest generator of self-initiated innovations which are oriented to corporate-level strategy. The empirical evidence from extant studies of other researchers in the field is consistent with these propositions. Implications for management practice, research and theory are discussed in the paper.

Original languageEnglish (US)
Pages (from-to)472-487
Number of pages16
JournalJournal of International Management
Volume13
Issue number4
DOIs
StatePublished - Dec 1 2007

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Finance
  • Strategy and Management

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