Purpose – The purpose of this paper is to investigate important impediments to knowledge creation within newly‐established foreign invested R&D centers in China and India. Design/methodology/approach – The paper presents a framework based on knowledge creation theory in order to understand the barriers for transfer and the creation of innovation‐related knowledge within newly‐established foreign invested R&D units in China and India. The paper utilizes extensive empirical data collected from a case study in three Scandinavian multinational companies (MNCs). Findings – Examples of innovations in China and India within Scandinavian MNCs are presented. Impediments to these innovations are identified with regard to socialization and knowledge creation. Particular skills of R&D employees in China and India are relevant for process innovations, e.g. competencies in codification of knowledge. Originality/value – A synthesis of existing knowledge creation theory is applied to compare R&D knowledge creation skills of Chinese, Indian, and Scandinavian engineers, within MNCs. The new framework explains knowledge creation in China and India, and can be used in other foreign invested R&D units in these countries. Implications for managers working with newly established foreign invested R&D units in emerging markets are offered.
Journal of Technology Management in China – Emerald Publishing
Published: Sep 27, 2011
Keywords: China; India; Scandinavia; Multinational companies; Knowledge creation; Knowledge transfer; Foreign invested R&D; Innovation performance
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