The objective of this case study is to demonstrate that incremental improvements in product development processes can be understood as an outcome of strong competitive pressures originated both in subsidiary's external environment and in the internal organization of the multinational corporations (MNC's) R&D activities. From a theoretical viewpoint, the article reveals an internal R&D organization rarely found in practice which combines three elements known forms studies of organizational governance: hierarchy, market and cooperation. In this respect, the company is different from the "classical" organization which is exclusively based on hierarchical control. In line with our main objective, we will show that this combination seems to be one of the main factors that foster learning and the improvement to the product development process. The latter point as well as the comprehensive perspective of a MNC's R&D organization might also convey some useful insights from a practical point of view.
product development process; multinacional company; markets and hierarchies
