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| The Enterprises' Motivations of Establishing Global R&D Network |
| He Jianhong1,Yang Qing2 |
| 1.School of Economics and Management, Chongqing University of Posts and Telecommunications, Chongqing 400065, China; 2.School of Foreign Languages, Donghua University, Shanghai 200051,China |
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Abstract This paper analyses how Microsoft established global R&D network and what are the main motivations based knowledge absorption and knowledge diffusion, and then indicates the way Microsoft achieved its motivation and its effect on the performance. The main results include: knowledge absorption and diffusion is one of the most important motivations when one enterprise tend to establish a global R&D network which is the foundation and prerequisite for performance improvement; In the same time, agencies of global R&D network can increase the stock of knowledge of the parent company and optimize the knowledge structure through knowledge absorption and diffusion. Thus through transforming and integrating innovation knowledge enterprises can improve innovation sustainable competence. As to enterprises in China, when building a global R&D network, they should be properly analyzed their motivation and conditions, in order to make sound decisions in the strategic development of global R&D network, location choice, the scale of investment, and etc.
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Received: 22 December 2015
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Corresponding Authors:
He Jianhong
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