6. Discussion
In this study, I analyzed how NPD recentralization was conducted in each of the four case MNCs with different contexts, based on which I developed a typology and a process model of NPD recentralization towards a transnational emphasis. The process model has two dimensions – power centralization and pluralistic input. In the power centralization dimension, the change motivation affects the approach to power centralization which leads to the change of NPD project objectives. In the pluralistic input dimension, NPD process implementation influences the approach to pluralistic input which causes the input format change in NPD projects. The four MNCs used different approaches to power centralization and pluralistic input, showing four process variants.
6.1. Theoretical implications
6.1.1. The processes of NPD recentralization
Previous studies on R&D recentralization have analyzed its performance implications (Chen et al., 2012; Lehrer and Asakawa, 2003). Through focusing on the development function in R&D recentralization, this study examines its underlying approaches and processes, therefore, adding insights into how positive performances may be achieved. Meanwhile, variation of approaches and processes is discovered showing the contingent nature of NPD recentralization. Chen et al. (2012, p. 1545) argued that MNCs recentralize R&D due to “growing coordination problems” of decentralized R&D. However, they have not sufficiently explained how an MNC can be aware of the coordination problems or inefficiency, given that organizations can be subject to “blind spots” (Fotaki and Hyde, 2015; Geiger and Antonacopoulou, 2009). This study reveals two possibilities demonstrated by reactive and proactive motivations. For MNCs with a reactive motivation, the declining profit is a stimulus that helps them to clearly realize the coordination problems and inefficiency. For MNCs with a proactive motivation, they examine or reflect on their own organizational structures (sometimes through comparing with competitors), and detect coordination problems or inefficiency as the room for improvement.