The evolution of the ability to effectively innovate in a transnational organization – A configurational analysis

The transformation of transnational organizations coincides with the innovation ability and is based on the evolutionary changes in MNEs. The phenomenon of interest is investigated with a qualitative study through interviews with senior directors of a pharmaceutical MNE in both headquarters and subsidiaries supplemented with company data and information. A configurational analysis using fuzzy set Qualitative Comparative Analysis (fsQCA) transfers the antecedent and outcome conditions into equifinal paths. The ability to innovate effectively is a function of the complexity of organization, complexity of science in light of local responsiveness. The findings contribute to enlarging the transnational theory regarding the ability to innovate effectively and the reconfiguration to a neomultidomestic archetype. The transnational organization with its evolutionary developments and re-configurations is the driver for worldwide innovation in an uncertain environment and with the challenges of new drug development a vehicle for innovation in the pharmaceutical industry. The study is important because it provides access to one of the leading pharmaceutical companies investigating its evolution and reconfiguration to adapt to new challenges in an ever-changing international business and scientific environment.