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Research Summary We integrate insights from upper echelon theory and the literature on innovation and multinational corporations (MNCs) to develop a framework explaining when and why nationality diversity in top management teams (TMTs) affects corporate entrepreneurship-as evidenced by diversity in global knowledge sourcing-and through this innovation performance in MNCs. In a panel of 165 manufacturing MNCs based in 20 countries, we confirm that the positive effects of TMT nationality diversity on corporate entrepreneurship and innovation are only unleashed in TMTs with low social stratification and in MNCs located in home countries that are low in national power distance. Our study contributes to opening up the black box of the upper echelon's strategic role in spurring entrepreneurship and innovation in MNCs embedded in different cultures. Managerial Summary The internationalization of TMTs in MNCs has been increasing in response to the globalization of markets and sources of knowledge. In this study, we examine under what circumstances MNCs that have TMTs comprised of executives with diverse nationalities exhibit stronger innovation performance. Analysis of leading corporations from 20 countries over a period of 10 years reveals that MNCs with diverse TMTs engage more in corporate entrepreneurship and subsequently see increased innovation performance-but only when these TMTs are operating in environments characterized by equal distribution of power and low hierarchy. The findings underscore the important role of corporate headquarters and TMT composition in the strategic management of modern MNCs.

International audience; This chapter deals with a particular type of dynamic capability: dynamic relational capabilities. They are defined as the organisational ability of a firm to enter into successful business relationships with other actors. It is shown that these abilities, based on organisational memory, are expressed in particular through the acquisition of assets and the conclusion of partnerships/alliances. In the pharmaceutical industry, open innovation strategies are the concrete proof of such abilities. Indeed, this sector is considered to be a High-Velocity Environment characterized by a high rate of change. Such change, challenging firms’ competitive advantage, fosters the development of dynamic capabilities and open innovation strategies. These theoretical considerations are illustrated by reference to the innovation strategy adopted by the Sanofi group, particularly since 2008.

An optimal balance between efficient exploitation of available resources and creative exploration of alternatives is critical for adaptation and survival. Previous studies associated these behavioral drives with, respectively, the dopaminergic mesocorticolimbic system and frontopolar-intraparietal networks. We study the activation of these systems in two age and gender-matched groups of experienced decision-makers differing in prior professional background, with the aim to understand the neural bases of individual differences in decision-making efficiency (performance divided by response time). We compare brain activity of entrepreneurs (who currently manage the organization they founded based on their venture idea) and managers (who are constantly involved in making strategic decisions but have no venture experience) engaged in a gambling-task assessing exploitative vs. explorative decision-making. Compared with managers, entrepreneurs showed higher decision-making efficiency, and a stronger activation in regions of frontopolar cortex (FPC) previously associated with explorative choice. Moreover, activity across a network of regions previously linked to explore/exploit tradeoffs explained individual differences in choice efficiency. These results suggest new avenues for the study of individual differences in the neural antecedents of efficient decision-making., Frontiers in Human Neuroscience, 7, ISSN:1662-5161

Innovation scholars have long touted the value of cross-functional teams, and though firms have embraced a cross-functional design in their new product development (NPD) teams, these teams continue to face challenges. Stability in an NPD team may offer important advantages for decision making; however, its effectiveness as a structural coordination mechanism remains largely unexplored. Therefore, to offer insight into the value of NPD team stability, the authors develop a process-based model that examines the extent to which stability influences certain decision-making processes, which in turn influence new product advantage. They examine these relationships with a sample of cross-functional NPD project teams from 208 high-technology firms. The results reveal that the degree of stability in an NPD project team has a curvilinear relationship to team-level debate and decision-making comprehensiveness. In turn, whereas debate is positively related to decision comprehensiveness, decision comprehensiveness is positively related to new product advantage only at high levels. These curvilinear patterns shed light on anecdotal evidence that currently attributes success to both stable and unstable project teams.