Driving Innovation Initiatives in a Multinational Company Subsidiary: A Case Study and Conceptual Framework for Further Application

Abstract

This study aims at identifying factors that facilitate the development of the capacity to generate innovations in a subsidiary of a multinational company. Based on the understanding that innovation management deals with the establishment of organizational routines and the investigation of environmental factors that affect the success of the innovation process, the purpose of this work is to contribute toward identifying these factors. For this, a single case study was carried out in a Brazilian subsidiary of a German multinational company, having as incorporated objects the two Business Units of the subsidiary. The results include 20 potential factors to drive the innovation process in the subsidiary company organized as a tree-like structure with three categories: reasons to innovate, spontaneous factors and induced factors. The structure serves as a conceptual framework to address future research, as well as to help subsidiaries’ managers to leverage innovative potential. The study opens room for further implementation of open innovation in the company, as the innovation process is now more stable and robust. Excellent alternatives for open innovation projects are available in the local market and can now be implemented by the company.