Rim Case Study

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1. Focusing on some key aspects of MNE’s cross border technology management, critically evaluate to what extent RIM has been successful or unsuccessful? Globalization in today’s world has had a large impact on the R&D activities of MNE’s. The increasing capabilities of innovation in different regions of the world has led MNE’s to locate there R&D activities away from there home country (OECD, 2008). In this case, RIM tried to develop its R&D activities internationally, and was partly successful in doing so. It was facing a certain problems in internationalizing its R&D, which would be discussed in this report. Investment analysts had predicted sales to increase by 70% in 2008. If it did, the challenge to RIM would be to locate the additional engineers required to meet the increasing demand and to integrate them to RIM’s culture, as its culture was considered to be one of the major factors for its low employee turnover rate. Recently, It was also recognized as one of Canada’s 10 most admired corporate cultures. RIM was trying to cope with the increasing demand in the process of expansion and technology transfer. Since 2007, it had employed more than 2100 employees with different field of expertise in order to improve the performance of the blackberry device and develop new devices. R&D expense had increased significantly, but was less compared to the percentage of sales. According to Gassman and Zedtwitz (1999) the scarcity of resources in a technological firms home country lead them try to and locate their R&D activities at regions that excel in technology. Similarly, RIM was facing problems of scarcity of resources in Waterloo, as it had already partnered with best developers and employed the best engineers from University of Waterloo and was trying to expand, but the competitive atmosphere in the global software

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