Organizational Learning in Multinationals: R&D Networks of Japanese and US MNEs in the UK*

The institutional approach treats organizational forms and behaviour as contingent upon institutions that are durable and socially embedded and so several authors have argued that the nature and modes of operation of multinational enterprises (MNEs) vary according to their national origins. This paper examines the ways in which national patterns of organization and innovation affect Japanese and US MNEs’ global R&D networks and transnational learning, based on case studies of their R&D laboratories in the UK. In particular, it focuses on how these MNEs tap into foreign academic knowledge base and scientific labour through collaborative links with higher education institutions. Relative to many Japanese MNEs, US firms have developed a greater organizational capacity for coordinating globally dispersed learning and embedding themselves in local innovation networks because the liberal institutional environment within which US MNEs have developed enables them to extend their organizational and human resource systems across institutional and geographical boundaries. By contrast, Japanese MNEs appear to be more limited in their transnational learning because of the much more tightly integrated organizational and business system within which they are embedded. The paper also illustrates how the contrasting logics of the US ‘professional community’ and the Japanese ‘organizational community’ model of learning are manifested in MNEs.