This CIMS-sponsored project seeks to expand our knowledge about the effective operation of overseas R&D labs. Specifically, the study examined (a) the contingency of three cultural forces (corporate, scientific, and local) on the performance of overseas labs as conditioned by type of foreign R&D operation, and (b) how influences from these cultural forces are affected by various organizational and administrative practices. Eight theoretical propositions were advanced and tested using data collected from field interviews and questionnaire survey. Results provide substantial support for the propositions. Specifically, they show that the optimal mix of cultural influenced for effective lab performance is contingent on the type of foreign R&D operation performed. They also show that the primary cultural contributor to effective lab performance shifts from one cultural force to another (e.g., from local to corporate culture) as a lab's involvement in a foreign R&D operation increases. Finally, the results identify specific organizational and administrative practices that managers can implement to help bring about the optimal mix of cultural influences for effective lab performance. These practices include: lab director appointment and reporting relationship, expatriate training, headquarters and subsidiary interactions, allocation of advanced R&D resources, unit staff composition, and unit performance evaluation.
Click on the link below for the final report in pdf.