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Management International Review

, Volume 54, Issue 2, pp 137–169 | Cite as

Renewing Dynamic Capabilities Globally: An Empirical Study of the World’s Largest MNCs

  • Rakesh B. SambharyaEmail author
  • Jooh Lee
Research Article

Abstract

This study empirically tests whether MNCs leverage and exploit existing innovative capabilities to penetrate foreign markets by international diversification. MNCs then utilize these international diversification strategies to develop future new knowledge resources and skills being increasingly developed around the globe. The analyses used a sample of the largest MNCs’ from Europe, Japan and North America representing nine industries. Results indicate that MNCs initial innovative capabilities are positively related to future international diversification. Our analyses showed that international diversification, in turn were positively and significantly related to the MNCs’ future R&D intensity, number of patents, and Technological Impact Index.

Keywords

Dynamic capabilities International diversification Innovation Dynamic capability lifecycle Multinational enterprises Capability leveraging Capability building R&D intensity Patents 

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© Springer-Verlag Berlin Heidelberg 2014

Authors and Affiliations

  1. 1.Rutgers University-CamdenCamdenUSA
  2. 2.William G. Rohrer College of BusinessRowan UniversityGlassboroUSA

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