The paper assesses the influence of foreign-owned subsidiaries’ (FS) intra- and inter-organizational relationships on product innovation performance. Data drawn from CIS figures for the 2006-2008 cover 1747 FS established in Germany, 385 FS in the Czech Republic, and 276 FS in Romania. Our analysis, employing the structural equation model, reveals a positive influence of FS internal relationships (with both local and foreign partners) and of FS external linkages on product and marketing innovation, the strongest in Germany-based FS. Moreover, a significant positive influence of FS internal relationships on external innovation cooperation is shown. Results suggest a relatively deeper embeddedness of Germany-based FS than of FS located in analysed transition economies.
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Gołębiowski et al. (2015) studied this question.
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