Gurkov I.B., Kossov V.V., Morgunov E.B., Saidov Z.B. Innovative Practices of the Russian Manufacturing Subsidiaries of Multinational Corporations – Factors of Efficient Activities Creation and Routinization. Part 1.  // Economics of contemporary Russia 2013. ¹2 (61) Ñ.76.
    The extant literature acknowledges the role of overseas subsidiaries in the growth and development of multinational companies (MNCs). Such subsidiaries are viewed as critical players in the innovation process at MNCs. Although this topic has gained importance, it remains largely under-researched in the Russian context. This study aims to fill this gap byexamining the dynamics of the innovation process in the Russian-based subsidiaries of global MNCs. It seeks to explore and understand motivation and drivers of innovation, key participants, and impact and outcomes of innovation. The key element of the study is a metrics developed and used for observation and analysis of innovative practices in particular functional areas, namely marketing, production, human resource management. This metrics is based on two key parameters – the level of novelty of a particular innovative solution and the magnitude of change the solution requires in the respective functional area. We present qualitative findings from several case studies of Russian manufacturing subsidiaries of foreign MNCs, which indicate that innovations in production, marketing and human resource management are closely interrelated. In addition, such practices are centered on two major tasks – “continuous improvement” of already installed manufacturing facilities and necessary works related to acquisitions of local firms and greenfield investments. We postulate that successful application of “continuous improvement”, that leads simultaneously to an increase of quality of company’s products and to cost reduction serves as  the major trigger for further corporate investments in Russia, either in the forms of acquisitions or in greenfield projects. In addition, our findings indicate that Russian subsidiaries are not only recipients of knowledge and technology developed elsewhere in the MNCs, but are active developers of innovative products and solutions that are later applied in other units of the respective MNCs. Such flow of reverse innovations seems to widen in the near future.
Keywords: manufacturing, multinational corporations, organizing for innovations.
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