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The Innovation of the Sales Subsidiary in MNE parent firm-sales subsidiary-customer firm relationships: Technology and Market information flows

Kim Seung Hoi1 · Chaisung Lim1 · Yongsam Kang1

1 Konkuk University

Published: January 2015 · Vol. 19, No. 4 · pp. 221-238
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Abstract

This study has identified the active innovation of the sales subsidiary: the activity at an early stage of creation of the solution for product development for the customer. The activity is implemented with the mutual exchange of technical information among customer firm-sales subsidiary-and the parent firm. In addition, from the project case which offered a momentum of taking an active role of the sales subsidiary, this study illuminated how the sales subsidiary could take the active role: in order to capture the opportunity of product development for the customer firm, the sales subsidiary take the role of the solution creation process from close interaction with the customer through exchanging technical information firm while the parent firm exchange complementary technical information with the sales subsidiary for supporting the sales subsidiary. The paper shows that the MNC of the industrial goods needs to allow the delegation of the initial part of solution creation activity to the sales subsidiary when the parent firm is not in a position to carry out close interaction with the customer for carrying out an initial stage of the solution creation process.
Keywords: 다국적기업 자회사혁신활동판매자회사국제경영