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This paper examines strategic capabilities as drivers of the development and launch of radical innovations. We construct a theoretical framework relating five strategic capabilities (mar- keting, market linking, technology, information technology, and management-related capabilities) to radical innovation. From this framework, we derive hypotheses concerning a division's propensity to engage in radical innovation. Using empirical data derived from a research study of 376 firms in the United States, Japan, and China, we apply analysis of variance and negative binomial distribution (NBD) regression techniques to test our hypotheses. We find evidence that, overall, technology and information technology capabilities are significantly and positively related to radical product innovation. We also find some significant differences among the three country samples concerning drivers of radical innovation. Marketing capability is more significantly and positively related to radical innovation in the United States than in Japan; and, in China, the only capability that is significantly and positively related to radical innovation is technology. All of the findings completely or partially support our research hypotheses. We conclude with a discussion of the managerial implications of our findings, and directions for future research. [ABSTRACT FROM AUTHOR]

We examined 79 Japanese MNCs' R&D subsidiaries in the US from the knowledge-based view. We found: 1) subsidiaries' R&D strategies encouraged some types of knowledge flows, but discouraged other types; 2) autonomous R&D subsidiaries promoted knowledge flows from local environments to the subsidiary; 3) process-oriented incentives promoted technical knowledge flows between a subsidiary and its headquarters; 4) knowledge flows and R&D strategies contributed to a subsidiary's knowledge accumulation; 5) organizational factors such as autonomy and process-oriented incentives contributed more to a subsidiary's overall performance than the subsidiary's R&D strategies did. [ABSTRACT FROM AUTHOR]

Presents a study which examined the institutional and organizational influences upon information exchange and governance structures within research and development consortia in the United States and Japan. Data analysis and research design; Results of the study; Conclusions.