From static to dynamic use of inter-firm objects and its impact on innovation performance

Abstract

Many different objects are used by companies to transfer knowledge to globally distributed subsidiaries. However, tapping into the local knowledge of subsidiaries and transforming this into innovation capabilities remains a challenge for many multinational companies. In this paper, we aim to discuss how different approaches to the use of inter-firm objects can affect companies' abilities to obtain the subsidiaries' knowledge and utilise it to different degrees of innovation performance. For this purpose, we adopted a multiple case study approach consisting of ten multinational companies located in Denmark. Our findings show that companies use inter-firm objects to either control the flow of knowledge and subsidiaries' operations, i.e., the static use, or to create the circumstances favouring a collaborative relationship between headquarter and subsidiaries, i.e., the dynamic use. This paper provides a discussion and perspectives of further research concerning the impact of the different use of inter-firm objects on innovation performance.