Engaging customer cocreation in new product development through foreign subsidiaries : influences of multinational corporations’ global integration and local adaptation mechanisms
Efforts to engage customers in cocreating new products have garnered much research attention from studies documenting customer cocreation’s (CC’s) positive impact on firm innovation and performance. Less research, however, has counterbalanced the bright side with the potential dark side of CC, espec...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Journal Article |
| Language: | English |
| Published: |
2021
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10356/154480 |
| _version_ | 1811683110109052928 |
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| author | Leung, Fine F. Tse Caleb .H. Yim, Chi Kin |
| author2 | Nanyang Business School |
| author_facet | Nanyang Business School Leung, Fine F. Tse Caleb .H. Yim, Chi Kin |
| author_sort | Leung, Fine F. |
| collection | NTU |
| description | Efforts to engage customers in cocreating new products have garnered much research attention from studies documenting customer cocreation’s (CC’s) positive impact on firm innovation and performance. Less research, however, has counterbalanced the bright side with the potential dark side of CC, especially as a strategy for multinational corporations (MNCs) operating in foreign markets. This study examines how MNC subsidiaries’ CC affects new product innovativeness and knowledge leakage to competitors. Adopting a broader agency perspective to recognize that subsidiaries often do not perform up to headquarters’ expectations due to both self-serving opportunism and honest incompetence, this study explores how CC effects are contingent on MNCs’ global management mechanisms. Using a dyadic managerial survey of 238 MNC subsidiaries, the authors find that MNCs can control knowledge leakage by implementing proper global integration and local adaptation mechanisms. However, CC may not improve new product innovativeness, except when the subsidiary has low local research-and-development staff influence. This study contributes to the CC literature by showing its benefits, challenges, and boundary conditions as a growing MNC innovation strategy. |
| first_indexed | 2024-10-01T04:07:31Z |
| format | Journal Article |
| id | ntu-10356/154480 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T04:07:31Z |
| publishDate | 2021 |
| record_format | dspace |
| spelling | ntu-10356/1544802023-05-19T07:31:16Z Engaging customer cocreation in new product development through foreign subsidiaries : influences of multinational corporations’ global integration and local adaptation mechanisms Leung, Fine F. Tse Caleb .H. Yim, Chi Kin Nanyang Business School Business::Marketing Customer Cocreation Headquarters-Subsidiary Relationship Efforts to engage customers in cocreating new products have garnered much research attention from studies documenting customer cocreation’s (CC’s) positive impact on firm innovation and performance. Less research, however, has counterbalanced the bright side with the potential dark side of CC, especially as a strategy for multinational corporations (MNCs) operating in foreign markets. This study examines how MNC subsidiaries’ CC affects new product innovativeness and knowledge leakage to competitors. Adopting a broader agency perspective to recognize that subsidiaries often do not perform up to headquarters’ expectations due to both self-serving opportunism and honest incompetence, this study explores how CC effects are contingent on MNCs’ global management mechanisms. Using a dyadic managerial survey of 238 MNC subsidiaries, the authors find that MNCs can control knowledge leakage by implementing proper global integration and local adaptation mechanisms. However, CC may not improve new product innovativeness, except when the subsidiary has low local research-and-development staff influence. This study contributes to the CC literature by showing its benefits, challenges, and boundary conditions as a growing MNC innovation strategy. 2021-12-23T06:25:59Z 2021-12-23T06:25:59Z 2020 Journal Article Leung, F. F., Tse Caleb .H. & Yim, C. K. (2020). Engaging customer cocreation in new product development through foreign subsidiaries : influences of multinational corporations’ global integration and local adaptation mechanisms. Journal of International Marketing, 28(2), 59-80. https://dx.doi.org/10.1177/1069031X19890345 1069-031X https://hdl.handle.net/10356/154480 10.1177/1069031X19890345 2-s2.0-85077158678 2 28 59 80 en Journal of International Marketing © 2019 American Marketing Association. All rights reserved. |
| spellingShingle | Business::Marketing Customer Cocreation Headquarters-Subsidiary Relationship Leung, Fine F. Tse Caleb .H. Yim, Chi Kin Engaging customer cocreation in new product development through foreign subsidiaries : influences of multinational corporations’ global integration and local adaptation mechanisms |
| title | Engaging customer cocreation in new product development through foreign subsidiaries : influences of multinational corporations’ global integration and local adaptation mechanisms |
| title_full | Engaging customer cocreation in new product development through foreign subsidiaries : influences of multinational corporations’ global integration and local adaptation mechanisms |
| title_fullStr | Engaging customer cocreation in new product development through foreign subsidiaries : influences of multinational corporations’ global integration and local adaptation mechanisms |
| title_full_unstemmed | Engaging customer cocreation in new product development through foreign subsidiaries : influences of multinational corporations’ global integration and local adaptation mechanisms |
| title_short | Engaging customer cocreation in new product development through foreign subsidiaries : influences of multinational corporations’ global integration and local adaptation mechanisms |
| title_sort | engaging customer cocreation in new product development through foreign subsidiaries influences of multinational corporations global integration and local adaptation mechanisms |
| topic | Business::Marketing Customer Cocreation Headquarters-Subsidiary Relationship |
| url | https://hdl.handle.net/10356/154480 |
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