The effect of R & D laboratories on MNE subsidiary performance: a primary survey in a European Mediterranean country

Abstract

Purpose

This paper aims to examine the effect of R&D laboratories on the perceived performance of MNE subsidiaries during recession.

Design/methodology/approach

Employing resource-based view and knowledge-based theory, the authors investigate a unique sample of 171 technologically heterogenous foreign MNE subsidiaries located in Greece over the period of recession 2009–2016. The sample subsidiaries operate different types of R&D laboratories.

Findings

The authors find that MNE subsidiaries with advanced R&D laboratories such as locally integrated laboratories (LILs) and internationally interdependent laboratories (IILs) perform better in recession than subsidiaries with support laboratories (SLs) or subsidiaries without R&D laboratories. Overall, the authors find an asymmetric performance contribution of R&D laboratories at subsidiary level.

Originality/value

The study provides useful insights into the environmentally derived “knowledge-based - performance” context, so filling an important research gap, since little is known about the performance impact of the input-side of technological activity at MNE subsidiary level, especially as regards R&D facilities/infrastructure. Based on the findings the authors identify important managerial implications.

Citation

Georgopoulos, A., Aggelopoulos, E., Paraschi, E.P. and Kalogera, M. (2023), "The effect of R & D laboratories on MNE subsidiary performance: a primary survey in a European Mediterranean country", EuroMed Journal of Business, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/EMJB-10-2022-0177