This study explores the co-evolution of the subsidiaries of the multinational firm with their global organizations and geographic locations. We examine when and how subsidiaries make sense of and respond to technological changes in these environments to expand their scope and develop new technologies. Using the concept of local search, we propose that technological changes in a subsidiary’s parent firm and host country, in areas specific to the subsidiary’s expertise and at the broad industry level, have differential effects on subsidiary development of new technologies. We further propose that subsidiary innovative capability acts as a moderator, enabling subsidiaries to respond to technological changes and develop new technologies.

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Copyright © 2018 Oxford University Press. Article first published online: September 2018.

DOI: 10.1093/jeg/lby048

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Full citation:

Phene, Anupama, and Stephen Tallman. “Subsidiary Development of New Technologies: Managing Technological Changes in Multinational and Geographic Space.” Journal of Economic Geography, 18, no. 5 (September 2018): 1121–1147.