R&D mode choices in Central and Eastern Europe

Scholars have suggested that there is a lack of research which uses a parsimonious framework to examine international research and development (R&D) mode choice (Penner-Hahn JD. Firm and environmental influences on mode and sequence of foreign research and development activities. Strategic Manage J 1998;19:149-68; Cheng JLC, Bolon DS. The management of multinational R&D: a neglected topic in international business research. J Int Bus Stud 1993;24.1-18]. In this article, we explore two issues: (1) does Dunning's OLI framework explain how firms which invest in CEE R&D facilities select their vertical integration strategy; and (2) do firms whose choices can be predicted by Dunning's framework appear to be more satisfied with their R&D facility's performance. Our results indicate that: (1) R&D integration strategy can be predicted using Dunning's OLI framework; and (2) firms whose choices are predicted appear to be more satisfied with the performance of their R&D facilities. (C) 2001 Elsevier Science Inc. All rights reserved.