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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