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Technological complexity and the creation of impactful technologies: The role of inventors' international diversity and expertise

Year: 2025

Type: article

Abstract: Given that highly impactful technologies can generate immense value and build competitive advantages for MNEs, it is crucial to understand how they can successfully create them. This study's overarching contribution lies in explaining how MNEs can assemble inventor teams and optimize their composition to overcome the challenges of technological complexity and create highly impactful technologies. Analyzing a sample of 2.3 million technologies created by 183,833 firms across 139 countries, the study reveals that MNEs with teams that are internationally diverse (multi-country) and possess greater technological expertise are better equipped to leverage complex knowledge in technology creation. Importantly, it also indicates that while international diversity is less effective in making teams more innovative across all levels of complexity, its value lies in delaying the point at which extreme complexity hinders technology creation. In contrast, technological expertise helps team create more impactful technologies at any level of complexity but is less effective in postponing the point where extreme complexity becomes overwhelming. These insights underscore that international diversity and technological expertise are complementary, supporting MNE teams in distinct but synergistic ways.

Source: Journal of International Management

DOI: 10.1016/j.intman.2025.101239

Authors: Mario Kafouros, Eva Mavroudi, Murod Aliyev, Junjie Hong

Institutions: University of Leeds, Shandong University of Finance and Economics

Language: English

Topic: Innovation and Knowledge Management

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Industry, innovation and infrastructure

Open Access status: hybrid

Estimated APC paid: $4,020