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Resource allocations, knowledge network characteristics and entrepreneurial orientation of multinational corporations

By Christopher Williams and Soo Hee Lee

Abstract

This paper analyses entrepreneurial orientation (EO) in multinational corporations (MNCs) and develops a new typology of MNC EO based on combining R&D and asset growth investment intensities as orthogonal resource allocations. A cluster analysis of US MNCs on these two dimensions reveals three types of entrepreneurial stance: conservative, aggressive-asset growth and balanced. Internal knowledge network characteristics are shown to vary by stance, with more aggressive stances linked to knowledge governance supportive of the entrepreneurship process. In linking entrepreneurial orientation to the knowledge network of the MNC, this paper identifies factors important to the strategic management and on-going renewal of MNCs. In addition, the vector of R&D investment vs. asset growth investment is an indicator of entrepreneurial aggression and presents a new method of understanding the international strategies of MNCs

Topics: H1
Year: 2009
DOI identifier: 10.1016/j.respol.2009.05.007
OAI identifier: oai:kar.kent.ac.uk:32238
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