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Tarique, Ibraiz, and Randall Schuler. "A multi-level framework for understanding global talent management systems for high talent expatriates within and across subsidiaries of MNEs." Journal of Global Mobility 6, no. 1 (March 12, 2018): 79–101. http://dx.doi.org/10.1108/jgm-07-2017-0026.
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Purpose Researchers and practitioners are interested in developing frameworks that can improve the understanding of the emerging field of global talent management (GTM) within and across the subsidiaries of multinational enterprises (MNEs). A few studies have proposed such frameworks but only implicitly include constructs at different levels of analysis. This paper is a step toward bridging the gap. Grounded in multi-level theory, international human resources management (IHRM) frameworks, and the ability-motivation-opportunity model, the purpose of this paper is to develop a multi-level framework that describes the processes through which antecedents at four levels of analysis affect a subsidiary’s GTM system, which in turn directly affects outcomes at three levels of analysis. Design/methodology/approach This paper develops a multi-level framework that describes the processes through which antecedents at four levels of analysis affect a subsidiary’s GTM system. Along with including four levels of analysis and highlighting cross-level interactions in our proposed multi-level framework, several testable propositions are offered. Findings The framework developed in this paper depicts the causal relationship between the subsidiary IHRM strategy (subsidiary level) and subsidiary GTM system (subsidiary level), and the several moderating variables that specify conditions under which the subsidiary IHRM Strategy affects a subsidiary GTM system. The moderator variables include national culture distance (country level), MNE headquarters (HQ) orientation (MNE HQ level), and the required dynamic cross-cultural competencies (expatriate level). In addition, the framework shows the outcomes of a subsidiary’s GTM system across three levels: knowledge transfer (MNE HQ level), localization (subsidiary level), and cross-cultural learning (expatriate level). In the context of multi-level analyses (the authors discuss this next), the framework shows several top-down processes (e.g. P2, P4 and P5) and several bottom-up processes (e.g. P3 and P7). Research limitations/implications The proposed multi-level framework describes important antecedents and outcomes of a subsidiary’s GTM system, and proposes several propositions for future empirical and theoretical research that could be the focus of a systematic research program and agenda on GTM in subsidiaries. In addition, the proposed framework enables us to advance the GTM literature by improving the understanding of and offering insights about the GTM system of a subsidiary, and specifically contribute to research in IHRM and GTM in a number of ways. Practical implications Existing scholarly GTM frameworks used by practitioners do not take into account the multi-level complexities that exist when a subsidiary IHRM strategy may not align with the subsidiary GTM system. As such, both practitioners and researchers would benefit by adopting a multi-level framework that accounts for these complexities and how they interact with one another to influence the way subsidiaries manage their expatriate talent. Originality/value By using multi-level theory to examine subsidiary GTM systems, the authors advance both the GTM literature and the IHRM literature. Overall, this paper attempts to shift the focus of each subsidiary’s GTM system to a broader, multi-level perspective and contribute to new theory building in GTM research, specifically in subsidiary GTM-MNE research and provide some thoughtful suggestions for HR practitioners wanting to enhance the effectiveness of their MNEs.
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Tseng, Cher-Hung, and Liang-Tu Chen. "Determinants of subsidiary’s technological capability – examining the roles of subsidiary–local supplier linkage." Journal of Business & Industrial Marketing 29, no. 5 (May 27, 2014): 374–86. http://dx.doi.org/10.1108/jbim-06-2012-0094.
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Purpose – This study aims to explore the effects of subsidiary–local supplier linkage characteristics in a supply chain and the moderating effects of a multinational corporation’s (MNC’s) international experience (IE) and a subsidiary’s innovation orientation (IO) on the subsidiary’s technological capability. Design/methodology/approach – A new research framework is developed comprising four constructs and six research hypotheses. Applying the regression model, the hypotheses were tested on data from Taiwanese MNC’s subsidiaries of manufacturing industries in Asian developing countries. Findings – The subsidiary–local supplier linkage characteristics, including economic aspect: asset-specific investment (ASI) of local supplier and social aspect: relational capital (RC) of local linkage, are positively associated with subsidiary’s technological capability. Moreover, the MNC’s IE can enhance the positive effect of RC on the subsidiary’s technological capability and the subsidiary’s IO decreases the positive impact of ASI on the subsidiary’s technological capability. Practical implications – This study provides useful insights into how MNCs and subsidiaries should concentrate on the factors that increase the subsidiary’s technological capability. Moreover, MNCs’ and subsidiaries’ managers must endeavor to establish long-term linkages with carefully selected local suppliers, induce these suppliers to provide appropriate ASI, and actively develop RC in the subsidiary–local supplier linkage to enhance the subsidiary’s technological capability. Originality/value – This study demonstrates that subsidiary–local supplier linkage characteristics, MNC’s IE and subsidiary’s IO can be applied to examine the technological capability of subsidiaries operating in less advanced countries.
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Hong, Gahye, and Eunmi Kim. "How to Attract Talented Expatriates: The Key Role of Sustainable HRM." Sustainability 11, no. 19 (September 28, 2019): 5373. http://dx.doi.org/10.3390/su11195373.
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Retaining talented expatriates is important for multinational enterprises (MNEs) to maintain knowledge sustainability between their headquarters (HQ) and subsidiaries. However, depending on the host country image of a subsidiary, the attractiveness of the subsidiary may make it challenging to recruit prospective expatriates. Based on the sustainable human resource management (HRM) perspective, this study examines the direct effect of the host country image of a subsidiary and the moderating effect of family support policies on a subsidiary’s attractiveness, by comparing subsidiaries in the US and Vietnam. The results are based on data from 434 Korean potential expatriate applicants and show that the host country image of a subsidiary has a direct effect on the subsidiary’s attractiveness. Specifically, expatriate applicants are less attracted to a Vietnam-based subsidiary than to a US-based one. Further, the positive moderating effect of family support policies on subsidiary attractiveness is more relevant for the Vietnam-based subsidiary. This result suggests that family support policies can be a key strategy for overcoming the less preferred host country images of subsidiaries in emerging markets, thus improving subsidiary sustainability in the long term. The implications of these findings are provided in the context of sustainable HRM and the existing expatriate literature.
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Schweizer, Roger, Katarina Lagerström, and Johan Jakobsson. "The evolution of MNCs' R&D foreign units: the case of Swedish MNCs in India." Cross Cultural & Strategic Management 27, no. 3 (April 30, 2020): 365–88. http://dx.doi.org/10.1108/ccsm-06-2019-0116.
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PurposeThe article aims to explain how the drivers of subsidiary evolution influence a multinational company's (MNC) research and development (R&D) subsidiary's evolution over time.Design/methodology/approachThe article draws on insights from a longitudinal comparative case study of three Swedish MNCs' Indian R&D units.FindingsThe study shows that the evolution of R&D units is a triangular showdown among headquarter assignments, local market constraints, and opportunities, and that subsidiary choice is an important driver of both mandated extension and stagnation. We summarize our findings in various propositions that emphasize different drivers over time and that highlight the strong impact of a subsidiary's understanding of the corporate immune system on the evolution of that subsidiary's R&D mandate.Research limitations/implicationsDrawing on the common limitations of a case study approach, further research is needed to test the suggested propositions with larger samples, ideally with subsidiaries in other emerging and developed markets.Practical implicationsThe study illustrates the risks involved for subsidiary managers when pushing an R&D mandate-related initiative too far and provoking the corporate immune system. For headquarters management, the study highlights the importance of understanding that the development of R&D competence and capability at a subsidiary cannot be guided solely by headquarter assignments and local market characteristics; rather, the subsidiary's initiatives also need to be considered.Originality/valueThe study contributes to the literature on R&D internationalization by showing how the drivers of subsidiary evolution influence a subsidiary's R&D mandates over time and that subsidiary choice is an important driver of both mandated extension and stagnation.
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Pehrsson, Anders. "How does a foreign subsidiary’s differentiation strategy fit competitive dynamics and mandate?" European Business Review 28, no. 6 (October 10, 2016): 690–708. http://dx.doi.org/10.1108/ebr-08-2016-0107.
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Purpose Drawing on the contingency perspective of strategy, the purpose of this paper is to extend current understanding of fit between a differentiation strategy of the industrial firm’s foreign subsidiary and key contextual boundaries. Design/methodology/approach A conceptual framework is developed in which a differentiation strategy involves the complementary approaches of innovativeness and customer responsiveness. The key boundaries consist of local competitive dynamics and the value-adding mandate assigned to the subsidiary. Detailed features of four types of differentiation strategies are identified by analysing strategies applied by subsidiaries of industrial firms operating on the US market. Findings Four propositions are developed regarding alignment between strategy types and the boundaries. Relationships are proposed regarding a strategy type and a context specified by rivalry/relational competitive dynamics, and a broad/narrow value-adding mandate. Research limitations/implications The conceptual framework and the propositions may be tested by analysing statistical data on industrial firms’ subsidiaries operating in several host countries. Practical implications To increase a foreign subsidiary’s contribution to the global competitiveness of an industrial firm, an awareness of the boundaries to the subsidiary’s strategy of differentiation that may hamper the subsidiary’s performance is essential. Originality/value The conceptual framework, and the propositions, contributes to literature on the industrial firm’s global strategy because it focuses on subsidiary strategy and extends present understanding of the mechanisms that drive the effectiveness of a foreign subsidiary’s differentiation strategy.
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Liu, Yang, Jie Jiao, and Jun Xia. "Subsidiary Networks and Foreign Subsidiary Performance: A Coopetition Perspective." Management and Organization Review 15, no. 1 (March 2019): 111–43. http://dx.doi.org/10.1017/mor.2018.51.
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ABSTRACTFrom a coopetition perspective, we differentiate between a multinational enterprise's product-similar subsidiary network and product-different subsidiary network in a host country. We argue that the product-similar network will have a curvilinear (inverted U-shaped) effect on foreign subsidiary performance, whereas the product-different network will produce a monotonic (positive) effect. Moreover, we introduce host-country economic advantage and intangible resource of the subsidiary as moderators into the relationship between subsidiary network and performance. Using longitudinal panel data of foreign subsidiaries, we find evidence that when host-country economic advantage is large, and the level of intangible asset intensity is high, the inverted U-shaped effect of product-similar subsidiary network is less pronounced. Moreover, host-country economic advantage and intangible asset intensity both enhance the positive effect of product-different subsidiary network. However, the moderating effect of intangible asset intensity is opposite to our prediction.
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Nguyen, Quyen T. K. "The subsidiaries of multinational enterprises operate regionally, not globally." Multinational Business Review 23, no. 4 (November 16, 2015): 328–54. http://dx.doi.org/10.1108/mbr-05-2015-0017.
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Purpose – The purpose of this paper is to examine the determinants of home-region strategy of the multinational subsidiary and the impact of such a strategy on its performance. The author draws upon new internalization theory to develop a theory-driven model and empirically tests the simultaneous relationships between home-region strategy and performance of the subsidiary. Design/methodology/approach – The author tests the model using a simultaneous equation statistical technique on an original, new data set of publicly listed multinational subsidiaries operating in the ASEAN region, with parent firms’ headquarters across the broad triad. Findings – There are three significant findings. The first finding is that subsidiary-level downstream knowledge (marketing advantages), and the geographic location of the subsidiary in the same home region as of the parent firm are key antecedents of a subsidiary’s home-region strategy. The second finding is that a subsidiary’s profitability reduces home-region orientation; however, home-region strategy has an insignificant effect on performance. The third finding is that these subsidiaries generate on average 92 per cent of their total sales in the home region (the Asia Pacific). Originality/value – The author advances the existing literature on the regional nature of parent-level multinational enterprises by demonstrating that their quasi-autonomous subsidiaries also operate mainly on a home-region basis.
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Ferraris, Alberto. "Rethinking the literature on “multiple embeddedness” and subsidiary-specific advantages." Multinational Business Review 22, no. 1 (April 14, 2014): 15–33. http://dx.doi.org/10.1108/mbr-11-2013-0064.
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Purpose – This paper aims to synthesize the literature on embeddedness of MNE subsidiaries, rethinking the concept of “multiple embeddedness” in order to clarify the importance of the subsidiary-specific advantages. Design/methodology/approach – A new and innovative framework based on four key relationships: home country-specific advantages (CSAs)-Headquarters (HQ); HQ-subsidiary; subsidiary-host CSAs; and subsidiary-HQ. This framework is used to discuss the complex phenomenon of “multiple embeddedness”. Findings – The framework proposed sheds light on the subsidiary's need to develop and sustain over time its subsidiary-specific advantages (SSAs) and, where possible, to “upgrade” these SSAs and to integrate them across the entire network of the MNE. The framework is based on two pillars. The first one is the “creation and development” of firm-specific advantages (FSAs) (in the home country) and SSAs (in the host country); the second one is the “transfer” of these advantages from the parent to the subsidiary and vice versa. In addition, several interesting interrelations are found between the four main relationships, and the central role of the recombination capabilities and the importance of distance are highlighted. Originality/value – This paper is one of the first to develop a framework incorporating all the relevant relationships in multiple embeddedness. The framework is innovative and “embeddedness” is analyzed in a novel way, as many studies only partially analyze this complex phenomenon and neglect one or more of these relationships.
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Ando, Naoki, and Yongsun Paik. "Effects of two staffing decisions on the performance of MNC subsidiaries." Journal of Global Mobility 2, no. 1 (June 3, 2014): 85–101. http://dx.doi.org/10.1108/jgm-08-2013-0051.
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Purpose – The purpose of this paper is to examine the relationship between foreign subsidiary staffing and subsidiary performance by focussing on two staffing practices: first, the ratio of parent country nationals (PCNs) to foreign subsidiary employees and second, the number of PCNs assigned to the foreign subsidiary. Design/methodology/approach – Hypotheses predicting curvilinear relationships between the assignment of PCNs and subsidiary performance are tested using a panel data set consisting of 4,858 foreign subsidiaries of Japanese multinational corporations (MNCs). Findings – The results demonstrate that the two staffing practices have different effects on subsidiary performance. The ratio of PCNs to foreign subsidiary employees has an inverted U-shaped relationship with subsidiary performance, while the number of PCNs assigned to the subsidiary has a linear and negative effect on subsidiary performance. Research limitations/implications – The results of this study are subject to limitations. First, the sample used in this study consists solely of the foreign subsidiaries of Japanese firms. This research design limits the generalizability of the findings of this study. Second, other decisions related to subsidiary staffing such as the ratio of PCNs in the subsidiary's top management team need to be examined to advance understandings of the relationship between subsidiary staffing and subsidiary performance. Practical implications – MNCs need to identify the appropriate number of PCNs at which they can achieve the optimal trade-off with the PCN ratio to enhance the competitiveness and the performance of a foreign subsidiary. In doing so, they need to take into consideration that an increase in the number of PCNs has an immediate negative effect on the workplace morale of host country nationals. Originality/value – This study incorporates two staffing practices into its analyses and shows that they have different implications for subsidiary performance. The results suggest that focussing on one staffing practice alone limits understanding of the complex relationship between foreign subsidiary staffing and subsidiary performance.
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Claver-Cortés, Enrique, Patrocinio Zaragoza-Sáez, Mercedes Úbeda-García, Bartolome Marco-Lajara, and Francisco García-Lillo. "Strategic knowledge management in subsidiaries and MNC performance. The role of the relational context." Journal of Knowledge Management 22, no. 5 (June 11, 2018): 1153–75. http://dx.doi.org/10.1108/jkm-07-2017-0305.
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Purpose Based on the knowledge-based theories of the MNC, this research aims to develop and test a holistic model to analyse the relationship between the strategic knowledge management (SKM) processes undertaken by subsidiaries and MNC performance. Additionally, it focuses on determining the impact that the relational context can have on knowledge creation and transfer inside the internal network of an MNC. Design/methodology/approach The research hypotheses are tested by partial least squares (PLS) with data from a sample of Spanish subsidiaries of foreign multinational firms belonging to high-technology and knowledge-intensive sectors. Findings The results confirm that: the implementation of a SKM by a subsidiary positively impacts on knowledge creation; the knowledge created by a subsidiary positively influences knowledge transfer, increasing the knowledge existing in the MNC; the knowledge transfer across all MNC units has a positive impact on MNC performance; the subsidiary’s relational context arises as a mediating variable between the knowledge created by a subsidiary and its transfer to the rest of the MNC. Originality/value The research proposes a holistic model that contemplates the joint interaction of the variables knowledge creation, knowledge transfer and performance. In addition, the proposed model contemplates the variable SMK of the subsidiary as the beginning of the knowledge creation-knowledge transfer-performance process. Finally, the mediating role of the relational context in the relationship between knowledge creation and transfer is analysed.
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Galli Geleilate, Jose-Mauricio, Daniel S. Andrews, and Stav Fainshmidt. "Subsidiary autonomy and subsidiary performance: A meta-analysis." Journal of World Business 55, no. 4 (June 2020): 101049. http://dx.doi.org/10.1016/j.jwb.2019.101049.
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Ishihara, Hiroyuki, and Judy Zolkiewski. "Effective knowledge transfer between the headquarters and a subsidiary in a MNC: the need for heeding capacity." Journal of Business & Industrial Marketing 32, no. 6 (July 3, 2017): 813–24. http://dx.doi.org/10.1108/jbim-06-2015-0109.
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Purpose This paper aims to focus on knowledge transfer between the headquarters and a subsidiary of a multinational corporation (MNC). A framework with type of knowledge, absorptive capacity, disseminative capacity and tie strength is proposed. The framework is verified qualitatively and then further developed by adding another capacity needed by the headquarters: heeding capacity. Design/methodology/approach To check the validity of the proposed conceptual framework empirically, interview-based qualitative studies were conducted for two partner programs implemented in the Japanese subsidiary of a US-based IT company. Interviews were undertaken with 17 respondents in the headquarters, the Japanese subsidiary and two alliance partners in Japan. Findings It is confirmed that type of knowledge and absorptive capacity clearly affect the effectiveness of knowledge transfer. Also, it is found that the knowledge sender’s disseminative capacity matters. Additionally, a case is found in which network ties mitigate the ineffectiveness caused by low disseminative/absorptive capacity. Research limitations/implications In this research, cultural influences have not been considered. Also, this research has not paid attention to inter-organizational knowledge transfer. These provides potential for further research which could explore this complexity in more depth. Practical implications It is suggested that the headquarters of a MNC need to have a “heeding capacity” in cases where the target subsidiary’s disseminative capacity is low and tie strength between the subsidiary and the headquarters is weak. It is a capacity for the headquarters to heed what a subsidiary would like to transmit but cannot do well, and this is achieved by listening carefully and not letting language barriers or cultural differences obfuscate the meaning. Originality/value By focusing on a dyad between the headquarters and the Japanese subsidiary, the importance of disseminative capacity of a subsidiary is highlighted, which is not often the case in the extant literature. Also, headquarters’ heeding capacity is proposed.
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Chen, Zhijun, and Li Zheng. "How does subsidiary autonomy influence performance? The moderating role of uncertainty." Nankai Business Review International 9, no. 3 (August 6, 2018): 348–65. http://dx.doi.org/10.1108/nbri-03-2017-0013.
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Purpose The purpose of this paper is to explore the influence of subsidiary autonomy on subsidiary performance under uncertainty. Based on previous studies, the authors classify subsidiary autonomy into two categories, namely, strategic autonomy and operational autonomy, and investigate the relationships between these two categories of subsidiary autonomy and subsidiary performance under uncertainty. Design/methodology/approach The sample includes the subsidiaries listed on the Shanghai and Shenzhen Stock Exchanges in China from 2012 to 2015. Ordinary least squares are used to examine the hypotheses. Findings The results indicate that strategic autonomy is negatively related to subsidiary performance, whereas operational autonomy is positively associated with subsidiary performance. Moreover, uncertainty weakens the negative strategic autonomy-subsidiary performance linkage. Originality/value The findings of this study indicate that two categories of subsidiary autonomy (strategic autonomy, operational autonomy) have different effects on subsidiary performance. Moreover, uncertainty moderates the above relationships. This study explores the relationship between subsidiary autonomy and subsidiary performance and provides a useful guidance for the selection of subsidiaries’ management modes.
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Xu, Junqian, Dan Huang, and Yigang Pan. "Intra-firm Subsidiary Grouping and MNC Subsidiary Performance in China." Journal of International Management 25, no. 2 (June 2019): 100651. http://dx.doi.org/10.1016/j.intman.2018.10.001.
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Zhao, Haiyuan, and Xiaobao Peng. "Exploitation versus exploration." Chinese Management Studies 12, no. 3 (August 6, 2018): 547–74. http://dx.doi.org/10.1108/cms-09-2017-0278.
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Purpose This paper aims to draw on the network perspective of organizational innovation to present an argument on how a subsidiary should select innovation behavior. Design/methodology/approach In this framework, the paper analyzes middle- and high-level managers of subsidiaries from various industries located in the Chinese Mainland. Findings The results suggest the following ideas: internal embeddedness is positively related to exploitation innovation, external embeddedness is inverted-U related to exploration innovation, the availability of alternatives positively moderates the main effects, whereas restraint in the use of power negatively moderates them. Research limitations/implications The current study has a few limitations that provide meaningful research directions for future investigations. First, it only considers the industry and ownership as control variables. Second, this study was conducted in the Chinese context. Practical implications The analysis of the relationship between embeddedness and innovation behavior also shows that focal subsidiary must dynamically adjust the way of embeddedness on the basis of its strategy, and it can reasonable leverage strategic assets for exploitation innovation or exploration innovation. From the perspective of headquarters, establishing deep embeddedness with a subsidiary and giving it indispensable support are important to promote that subsidiary’s exploitation innovation. Social implications The focal subsidiary should establish relationships with more alternative partners and develop relationships with power-advantaged partners through strategies such as a long-term contract, establishing an R&D alliance and entering a joint venture. Besides this, more powerful partners in the internal network should adopt various power usage strategies to promote focal subsidiary exploitation innovation and more powerful partners in the external network should show restraint in the use of power toward any subsidiary in an over-embedded situation. The result shows environment dynamism affects subsidiary exploration innovation more deeply than exploitation innovation. Consequently, managers should recognize the importance of dynamic adaptation to environmental changes and adjust their firms’ innovation behavior accordingly, especially when they are implementing an exploration innovation strategy. Originality/value The extent of embeddedness in an innovation network shapes the subsidiary innovation behavior, and this effect is moderated by power. The focal subsidiary should dynamically and strategically adjust its innovation behavior considering various its type and level of embeddedness.
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Schweizer, Roger, and Katarina Lagerström. "“Wag the Dog” initiatives and the corporate immune system." Multinational Business Review 28, no. 1 (December 2, 2019): 109–27. http://dx.doi.org/10.1108/mbr-07-2019-0059.
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Purpose This paper aims to contribute to the subsidiary initiative literature by studying the interaction between a headquarters and its subsidiary during an initiative process that has the potential to “wag the corporate dog” that is, for the global corporation’s promising subsidiary initiative in a strategically important emerging market to question the corporation’s prevailing schemata. Design/methodology/approach The longitudinal single case study draws on evidence from the Indian subsidiary of Swedish Volvo Bus and its efforts to introduce a value product in India. Findings The study argues that wag the dog initiatives provoke the corporate immune system independent of the initiative’s potential and the subsidiary’s autonomy and legitimacy. If the idea behind the wag the dog initiative is perceived as strategically important for the multinational corporation, then the corporate immune system tries to engulf – most likely unsuccessfully – the idea within the prevailing schemata. Failed attempts to engulf the initiative weaken the corporate immune system temporarily, thereby opening the organization to revitalization of the original initiative. Resistance, even though weakened, from the corporate immune system continues to exist. Practical implications Subsidiary managers need to avoid having their headquarters perceive an initiative as a wag the dog initiative by balancing their need to sell persistently the initiative with avoiding negative attention. Originality/value This study is a pioneer in explaining how the corporate immune system reacts towards wag the dog initiatives taken from subsidiaries in large emerging markets.
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Gorgijevski, Alexander N., Christine Holmström Lind, and Katarina Lagerström. "Subsidiary strategic influence: the role of subsidiary attention-building activities." Management Decision 60, no. 13 (March 14, 2022): 48–65. http://dx.doi.org/10.1108/md-05-2021-0594.
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PurposeBy the view of attention-building activities as “tools of power,” the authors investigate the impact of subsidiary involvement in attention-building activities on the strategic influence of subsidiaries within multinational corporations (MNCs).Design/methodology/approachThe study is based on survey data from 110 international subsidiaries located in Sweden. Five hypotheses were tested using structural equation modeling with linear structural relations.FindingsThe study shows that organizational commitment and external scouting activities, as two attention-building activities, do not directly affect the ability of subsidiaries to gain a strategic influence in MNCs. Rather, the results provide support for the importance of headquarters’ positive attention as a mediator between such activities and subsidiary strategic influence. This implies that subsidiaries do not receive any strategic influence through these activities unless they receive explicit positive attention from the corporate headquarters.Originality/valueThis study contributes to the micro-political view of the MNC by offering insights into the impact of attention-building activities of subsidiaries as a potential source of strategic influence for MNC subsidiaries.
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Sengul, Metin, and Tomasz Obloj. "Better Safe Than Sorry: Subsidiary Performance Feedback and Internal Governance in Multiunit Firms." Journal of Management 43, no. 8 (October 17, 2017): 2526–54. http://dx.doi.org/10.1177/0149206316677298.
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This paper explores the link between subsidiary performance feedback and internal governance mechanisms in multiunit firms. A central premise of performance-feedback models is that performance below aspirations is associated with increased risk tolerance and thereby with a higher likelihood of taking excessive risks in resource allocation decisions. Building on this observation, we contend that the headquarters of multiunit firms take this association into account in the design of internal (i.e., headquarters-subsidiary) governance mechanisms. Accordingly, a subsidiary’s performance-aspiration gap (below aspirations) is positively associated with the headquarters’ oversight of its resource allocation decisions and negatively associated with the provision of incentive schemes that promote risk taking. Regression results, using data on subsidiaries in France between 1998 and 2004, support our hypotheses and show that subsidiaries performing below historical and social aspirations are less likely to be given discretion in investment decisions and incentivized by cash bonuses. In the supplementary analyses, we also provide suggestive evidence that subsidiary performance problems in multiunit firms trigger structural adaptation in the internal governance mechanisms in pursuit of regaining fit.
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Cordeiro, Matheus Baldo, Mario Henrique Ogasavara, and Gilmar Masiero. "The impact of within-country and within-firm factors on Japanese foreign subsidiary performance during economic crisis." Asia-Pacific Journal of Business Administration 9, no. 3 (September 4, 2017): 190–205. http://dx.doi.org/10.1108/apjba-12-2016-0113.
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Purpose The purpose of this paper is to analyze the relevant aspects that influence foreign subsidiary’s performance and remain how they retain competitiveness in international markets during economic crisis. To investigate this effect, this research analyzes the behavior of Japanese subsidiaries located in European countries during the pre- and post-crisis periods that started in the USA in 2008 and spread all over the world. Design/methodology/approach This is a quantitative study with an analysis based on longitudinal data of foreign subsidiaries of Japanese multinational firms during the period 2006-2013. It applies a multiple linear regression with panel data using fixed effects models. Findings The findings show that within-firm factors related to local experiential knowledge, market entry through joint ventures with partners from the same nationality, and subsidiary management with a team of expatriates all have a positive impact on subsidiary performance during times of economic crisis. Moreover, within-country factors involving macroeconomic aspects related to inflation rate and population income indicators show a negative impact on performance. Finally, the results confirm that subsidiary performance is higher in the pre-crisis period, showing the importance of considering economic crisis aspects in longitudinal studies. Practical implications The result has implications for managers of multinational firms to understand which factors most impact the success of their foreign subsidiaries during times of economic crisis. In this way, managers can, with greater confidence, decide to reach the most important performance indicator in subsidiary management. Originality/value The majority of studies on economic crisis is based on an economic perspective and mostly investigates Asian and Argentinean crises. When considering a firm-level perspective, most research studies conducted on a subsidiary level are cross-sectional or use survival as a measure of performance. This paper applies a longitudinal study using subsidiary-level data and analyzes performance by sales and productivity measurement. In addition, it investigates whether or not within-country and within-firm factors impacted subsidiary performance during the 2008 economic crisis.
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RASOULI GHAHROUDI, MEHDI, and YASUO HOSHINO. "ESTABLISHMENT, SURVIVAL, SALES GROWTH AND ENTRY STRATEGIES OF JAPANESE MNCs SUBSIDIARIES IN INDIA." Journal of Developmental Entrepreneurship 12, no. 04 (December 2007): 433–47. http://dx.doi.org/10.1142/s1084946707000745.
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This empirical study explores first the relationship between operating years and entry strategies based on wholly-owned and joint venture companies. Second, we examine the effects of equity ownership, size, entry strategy and subsidiary age on the sales growth ratio and the subsidiary's survival. Our findings show that in recent periods, the multi-national companies (MNCs) prefer to acquire high levels of equity ownership, including full ownership subsidiaries, especially when the subsidiary is in the manufacturing industry. Our results imply that capital, the age of the venture, the number of employees and full equity ownership affect survival. Finally, we find that subsidiaries with a small number of employees are likely to have a superior sales growth ratio and are more likely to survive.
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Pehrsson, Anders. "Foreign subsidiaries’ competitive strategy: the impact of corporate support and local competition." European Business Review 29, no. 6 (October 9, 2017): 606–27. http://dx.doi.org/10.1108/ebr-04-2017-0068.
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Purpose The study draws on the resource-based view and the contingency view of strategy. The purpose of this paper is to contribute to international strategy literature by extending the current understanding of foreign subsidiary’s competitive strategy in terms of cost leadership and product differentiation. Design/methodology/approach Hypotheses concern associations between corporate support building on product and skills relatedness and subsidiary strategies. Also, it is hypothesized that strategies are due to the type of local competitive intensity. The hypotheses were tested on wholly owned subsidiaries of Swedish industrial firms in Germany, the UK and the USA. Findings Product and skills relatedness between the subsidiary and the corporate core unit are positively associated with the subsidiary’s emphasis on cost leadership. Also, a positive association was found between skills relatedness and product differentiation, and extensive competitive intensity strengthens the relationship. Research limitations/implications The study specifies what business relatedness is needed for a subsidiary’s competitive strategy; skills relatedness is more important than product relatedness; the type of local competitive intensity is important; corporate support and local strategy operate simultaneously. Practical implications Management is advised to implement a foreign subsidiary’s competitive strategy by recognizing the mechanisms identified in this study. Originality/value In a unique way, the study captures the role of corporate support of a foreign subsidiary’s competitive strategy relying on business relatedness and the importance of aligning the strategy with competitive intensity.
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Tippmann, Esther, Pamela Sharkey Scott, Marty Reilly, and Donal O’Brien. "Subsidiary coopetition competence: Navigating subsidiary evolution in the multinational corporation." Journal of World Business 53, no. 4 (June 2018): 540–54. http://dx.doi.org/10.1016/j.jwb.2018.02.006.
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Mitchell, Rebecca, Stephen Nicholas, and Brendan Boyle. "Top Management Team Effects on Subsidiary Performance." Academy of Management Proceedings 2012, no. 1 (July 2012): 15044. http://dx.doi.org/10.5465/ambpp.2012.15044abstract.
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Yazdifar, Hassan, Mahbub Zaman, Mathew Tsamenyi, and Davood Askarany. "Management accounting change in a subsidiary organisation." Critical Perspectives on Accounting 19, no. 3 (April 2008): 404–30. http://dx.doi.org/10.1016/j.cpa.2006.08.004.
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Rodrigues, Cristina Doritta, Felipe Mendes Borini, Muhammad Mustafa Raziq, and Roberto Carlos Bernardes. "The roles of external embeddedness and institutional distance in the subsidiary product/process innovation and R&D capacity." Journal of Knowledge Management 24, no. 10 (September 30, 2020): 2513–30. http://dx.doi.org/10.1108/jkm-02-2020-0083.
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Purpose This study aims to look at the relationship of external embeddedness and institutional distance (governance aspects) with the foreign subsidiary research and development (R&D) capacity. Furthermore, it examines whether these relationships are mediated by subsidiary product and process innovation, and whether institutional distance plays a moderating role in the relationship between subsidiary innovation and R&D capacity. Design/methodology/approach The authors draw on survey data from 130 foreign subsidiaries operating in Brazil and test their model using variance-based structural equation modeling. Findings Results suggest that subsidiary (product and process) innovation fully mediates the relationships between: subsidiary external embeddedness and R&D capacity; and institutional distance and subsidiary R&D capacity, such that the relationship is positive in case of the former and negative in case of the latter. The relationship between subsidiary product and process innovation and R&D capacity is positive and stronger at lower levels of institutional distance. Originality/value The research ignores the underlying mechanisms of the external embeddedness and institutional distance relationship with subsidiary R&D capacity. Furthermore, institutional distance based on formal governance aspects and their impacts on subsidiary innovation and R&D capacity are rarely investigated. This paper contributes with regard to these aspects.
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Szász, Levente, Maike Scherrer, and Patricia Deflorin. "Benefits of internal manufacturing network integration." International Journal of Operations & Production Management 36, no. 7 (July 4, 2016): 757–80. http://dx.doi.org/10.1108/ijopm-05-2015-0265.
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Purpose – The purpose of this paper is to offer deeper insight into the relationship between a subsidiary’s internal integration in its manufacturing network and subsidiary-level operational performance by taking into account the country context of the respective subsidiary. Design/methodology/approach – Subsidiary-level information is gathered using the sixth round of the International Manufacturing Strategy Survey, thus including 507 subsidiaries from 22 countries. Country context is operationalised using the Global Competitiveness Report published by the World Economic Forum. Findings – The findings reveal that internal integration has a positive influence on operational performance improvement. Country context acts as a moderator on this relationship: subsidiaries in less developed countries are only able to improve their effectiveness (quality, flexibility, delivery), while developed country subsidiaries gain both effectiveness and efficiency (cost, time) benefits from internal integration. Research limitations/implications – The unit of analysis is the knowledge-receiving subsidiary without taking the characteristics of the sending unit or that of the whole network of subsidiaries into account. Based on the context-dependency of the integration-performance relationship found in this paper, a future research agenda is proposed including further factors (absorptive capacity, knowledge complementarity, organisational practices) that could influence this relationship. Practical implications – Subsidiary managers in less developed countries should strive to acquire intra-network knowledge related to effectiveness, while managers in developed countries can expect both efficiency and effectiveness benefits. Originality/value – A large-scale survey encompassing subsidiaries from both emerging and developed countries is used to offer deeper insight into the relationship between internal integration and performance. The paper provides a possible explanation for previous mixed findings on this relationship. The differentiation between efficiency and effectiveness performance shows that country context represents an important factor that moderates the integration-performance relationship.
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Чернышов, Mikhail Chernyshov, Тувышкина, Margarita Tuvyshkina, Куприн, Yuriy Kuprin, Азон, and Ermann Azon. "Basics of designing reconstruction of subsidiary crops in forest management." Forestry Engineering Journal 6, no. 1 (April 19, 2016): 72–84. http://dx.doi.org/10.12737/18729.
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The basic objectives and principles of the design for reconstruction of different categories of subsidiary crops during forest management are considered. An algorithm for computer-aided design based on a systematic approach that allows eliminating subjectivity of engineer-taxator when making design decisions is suggested. This algorithm can reliably establish the area and structure of the fund of subsidiary crops, as well as to forecast changes in the area by categories of forest land, categories of subsidiary crops and forest forming species by years and by the end of the revision period.
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Clarry, John W. "Managing the Multinational Subsidiary." Journal of International Business Studies 18, no. 3 (September 1987): 126–29. http://dx.doi.org/10.1057/jibs.1987.48.
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Bresciani, Stefano, and Alberto Ferraris. "Innovation-receiving subsidiaries and dual embeddedness: impact on business performance." Baltic Journal of Management 11, no. 1 (January 4, 2016): 108–30. http://dx.doi.org/10.1108/bjm-11-2014-0200.
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Purpose – The purpose of this paper is to investigate the relationship between the degree of subsidiary’s external and internal embeddedness and the contribution on subsidiary’s business performance of a received innovation. In particular it focusses on dual embeddedness of the subsidiary that receives an innovation from the rest of the MNC’s network. Design/methodology/approach – Using Amadeus databases were selected 93 CEE subsidiaries located in six countries. Data were collected through a standardized questionnaire and three hypothesis were tested through an OLS regression model. Findings – The results indicate that the two types of embeddedness positively affect the received innovation’s contribution on business performance. Moreover, the inclusion of the interaction term shows how a simultaneously high level of embeddedness in both external and internal business networks lead to a multiplicative and positive effect on subsidiary’s business performance. This means that external and internal embeddedness are not mutually exclusive suggesting, at the same time, the presence of interdependencies between the two networks that leads the “dual embedded” subsidiary to better received innovation performance. Research limitations/implications – The results are limited due to the sample characteristics and the conceptual focus of network theory. Regarding the first point, the results are derived from MNC coming from developed European countries that are geographically proximate. Regarding the second point, this approach neglects the limitations of networks. Practical implications – These results, therefore, propose to management the need to force the subsidiary toward a dual embeddedness in order to achieve better performance when an innovation has been received. Social implications – This study puts in evidence how Eastern European policy makers should increase the knowledge sharing and accumulation in the local clusters between all the stakeholders with the aim at increasing the “appeal” of this area. Originality/value – The specific contest in which the embedddedness component is analyzed is the main contribution of the paper because most of the previous research have been focussed on subsidiaries that develop and transfer the innovation. Moreover, the specific area where subsidiaries are located (Central and East Europe) may be another important contribution.
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Avram, Florin, and Andreea Minca. "On the central management of risk networks." Advances in Applied Probability 49, no. 1 (March 2017): 221–37. http://dx.doi.org/10.1017/apr.2016.85.
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Abstract In this paper we identify three questions concerning the management of risk networks with a central branch, which may be solved using the extensive machinery available for one-dimensional risk models. First, we propose a criterion for judging whether a subsidiary is viable by its readiness to pay dividends to the central branch, as reflected by the optimality of the zero-level dividend barrier. Next, for a deterministic central branch which must bailout a single subsidiary each time its surplus becomes negative, we determine the optimal bailout policy, as well as the ruin probability and other risk measures, in closed form. Moreover, we extend these results to the case of hierarchical networks. Finally, for nondeterministic central branches with one subsidiary, we compute approximate risk measures by applying rational approximations, and by using the recently developed matrix scale methodology.
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Hossain, Mohammad Monoar. "PROBLEMS AND POSSIBILITIES OF KNOWLEDGE TRANSFER: A CASE STUDY ON POWEL ENERGY MANAGEMENT AB." Indonesian Management and Accounting Research 8, no. 2 (November 10, 2016): 39–47. http://dx.doi.org/10.25105/imar.v8i2.1283.
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This study identifies problems, and recommends solutions within the realm of knowledge transfer in Powel Energy Management AB. The focus is on knowledge transfer on the inter-organizational level between the Swedish subsidiary and the Norwegian parent company. The study is based on data collected during interview with leading representatives from the Norwegian and Swedish organizations. The analysis is based on Davenport and Prusak's (1998) seven knowledge transfer hurdles in combination with Wang's (2004) model for knowledge transfer between parent company and subsidiary. The two key problems, which have been identified, are the parent company's moderate capacity to transmit knowledge and the subsidiary's moderate intent to learn. The author's recommendations consist of seven actions: 1) Use the word knowledge, 2) Disperse the knowledge base in the development team, 3) Create a direct link between the developers in Norway and business units in Sweden, 4) Make developers work in the selling and consulting environment, 5) Make the developers introduce new software features, 6) Increase usage of video conferencing, and 7) Introduce rewards for knowledge transfer.Key Words: Knowledge management, Knowledge transfer, Knowledge sharing.
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Borini, Felipe Mendes, Leandro Lima Santos, Muhammad Mustafa Raziq, Rafael Morais Pereira, and Aldo José Brunhara. "The differentiated role of organizational ambidexterity and organizational innovation in the subsidiary reverse knowledge transfer process." Journal of Knowledge Management 26, no. 1 (October 6, 2021): 146–64. http://dx.doi.org/10.1108/jkm-06-2020-0420.
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Purpose This paper underscores how organizational ambidexterity and organizational innovation play differentiated roles in the subsidiary reverse knowledge transfers (RKT). The authors argue that both organizational ambidexterity and organizational innovation play a positive but differentiated role in the RKT process in that the former positively influences subsidiary knowledge creation, whereas the latter positively influences subsidiary knowledge transfers. Design/methodology/approach Data were collected from 289 foreign subsidiaries operating in Brazil. Hypotheses were developed and tested by applying partial least squares structural equation modeling. Findings The results supported the hypotheses and showed that organizational ambidexterity promotes knowledge creation, and that organizational innovation facilitates knowledge transfers. Research limitations/implications The paper offers implications with regard to drivers of subsidiary investments and actions of subsidiary managers vis-à-vis the subsidiary objectives of knowledge creation and/or transfers. Originality/value Showing the different roles of organizational ambidexterity and organizational innovation, this paper reveals some underlying mechanisms of the RKT process and contributes by explaining the competitive heterogeneity of subsidiaries, with impacts on subsidiary management’s evolutionary and resource dependence perspective.
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Delany, Ed. "Strategic development of the multinational subsidiary through subsidiary initiative-taking." Long Range Planning 33, no. 2 (April 2000): 220–44. http://dx.doi.org/10.1016/s0024-6301(00)00029-7.
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Ferraris, Alberto, Gabriele Santoro, and Luca Dezi. "How MNC’s subsidiaries may improve their innovative performance? The role of external sources and knowledge management capabilities." Journal of Knowledge Management 21, no. 3 (May 8, 2017): 540–52. http://dx.doi.org/10.1108/jkm-09-2016-0411.
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Purpose This paper aims at exploring the effect of knowledge management (KM) practices on the relationship between external research and development (R&D) and innovative performance. The authors argue that the firms which develop and possess superior KM capabilities have the ability to better manage external knowledge and combine it with the internal one. Design/methodology/approach The authors used a sample of 117 European MNC subsidiaries. An OLS regression analysis was carried out to evaluate the moderator effect of KM on the relationship between external R&D and innovative performance. Findings The authors found positive evidences in favor of a moderator effect of KM. This means that subsidiaries with superior KM capabilities are more effective in using external R&D, augmenting the magnitude of their external sources of knowledge and, consequently, improving their innovative performance. Practical implications Managerially speaking, both corporate and subsidiaries’ managers need to understand the relevance of managing knowledge effectively and efficiently at the subsidiary level. Corporate managers need to allocate more resources (both financial and managerial) to the subsidiaries that are active in knowledge transfer and sharing, while subsidiaries managers need to implement practically the KM tools and processes at the subsidiary organizational level to improve subsidiary’s innovative performance. Originality/value This paper contributes mainly to the KM field, highlighting the importance of KM at the subsidiary level, whereas most of previous studies focus on different units of analysis.
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Chugunova, K. Yu. "Features of the Formation of the Will of Joint-Stock Companies Subsidiaries with Predominant State Participation (The Case of Russian Railways)." Actual Problems of Russian Law 15, no. 10 (October 29, 2020): 116–24. http://dx.doi.org/10.17803/1994-1471.2020.119.10.116-124.
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In the paper, the author examines the independence of joint-stock companies subsidiaries with predominant state participation in decision-making through the prism of the practice of building corporate governance at JSC 'Russian Railways'. The author sets the task to study the limits of participation of the main company in the formation of the will of the management bodies of a subsidiary company using the example of one of the largest Russian joint-stock companies with state participation. The author concludes that the parent company has virtually unlimited powers in determining the subsidiary's decisions, which is generated by the broad approach of the legislator to the definition of the subsidiary. For the first time, the paper identifies two independent forms of determining the decisions of a subsidiary by the main company, which are actively used in practice, but without direct consolidation at the legislative level. They are as follows: the direction to the subsidiaries by the main company of draft local regulations subject to approval by the management bodies of the subsidiary; and issuance by the parent company of instructions for voting at the annual general meeting and the meeting of the board of directors of the subsidiary. The author notes that under the conditions of unlimited powers of the parent company when determining the decisions of the subsidiary company there is the risk of transformation of subsidiaries of joint-stock companies with predominant state participation into nominal structures not interested in high-quality corporate governance, blindly fulfilling the will of the parent company. The material presented in the paper can be used both in further scientific research when studying the issue of independence of subsidiaries of joint-stock companies with predominant state participation, and by practicing lawyers working in joint-stock companies with state participation and their subsidiaries, as well as by state bodies participating in the improvement of corporate law.
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Wang, Sheng, Tony W. Tong, Guoli Chen, and Hyondong Kim. "Expatriate Utilization and Foreign Direct Investment Performance: The Mediating Role of Knowledge Transfer†." Journal of Management 35, no. 5 (December 22, 2008): 1181–206. http://dx.doi.org/10.1177/0149206308328511.
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Multinational corporations (MNCs) often assign expatriate executives overseas to transfer knowledge, yet prior research has not specifically examined the utilization of expatriates as a strategic resource to facilitate knowledge transfer and enhance foreign direct investment performance. Drawing from the resource-based view of the firm and the international strategy literature, the authors argue that assignment of particular expatriates to the subsidiary will enhance subsidiary performance and that the knowledge transferred into the subsidiary through expatriates will mediate this relationship. Results based on MNCs’ subsidiaries in China showed that using expatriates with motivation and adaptability for knowledge transfer enhanced subsidiary performance and that this relationship was mediated by knowledge transferred into the subsidiary; using expatriates with technical skills did not directly affect subsidiary performance but had an indirect effect on performance via knowledge transferred into the subsidiary. They also discuss the implications of their findings for the resource-based view of the firm and international strategy research.
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Fontana, Sina. "MIGRATION MANAGEMENT WITHIN FAMILY REUNIFICATION." Administrative law and process, no. 4 (27) (2019): 47–64. http://dx.doi.org/10.17721/2227-796x.2019.4.05.
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Family reunification is one of the purposes of stay within the Residence Act. The granting of the residence permit is fundamentally designed as a claim and must be granted if the requirements are met. In the course of ongoing forced migration, family reunification has become the focus of debates for ways to limit refugee migration. Since Article 6, Paragraphs 1 and 2 of the German Basic Law on the protection of marriage and family do not give rise to a right to entry, although its scope of protection must be taken into account when designing regulations on family reunification, the legislative scope for action is limited. The German legislature has decided that family reunification should be limited for persons with subsidiary protection status. Subsidiary protection is an element of protection that is shaped by EU law, which occurs alongside national asylum law and refugee protection, which is also shaped by EU law. Different requirements apply to these protective elements. Upon recognition, a humanitarian residence permit is issued, which differs in length depending on the protection status. While in the case of recognition as a person entitled to asylum or refugee status, the residence permit is initially issued for a period of one year, the duration in the case of subsidiary protection is only one year. In all cases there is the possibility of an extension. This different length of stay and the lower prospect of staying are the starting point for the restriction of family reunification for persons entitled to subsidiary protection in Section 36a of the Residence Act. As specified in the regulation as an example, family members of a person with subsidiary protection status can be granted a residence permit for the humanitarian reasons. The family reunification is now made dependent on the existence of further prerequisites in addition to family ties and is also designed not as a right but as a discretionary clause. In addition, the number of visas is limited to 1000 per month. Concerns about this restriction of family reunification were raised, in terms of possible violation of Article 6 Paragraphs 1 and 2 and Article 3 Paragraph 1 (Equality before the law) of the German Basic Law. Based on this, the following article carries out a constitutional analysis.
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Cantwell, John, and Ram Mudambi. "MNE competence-creating subsidiary mandates." Strategic Management Journal 26, no. 12 (2005): 1109–28. http://dx.doi.org/10.1002/smj.497.
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Dhanaraj, Charles, and Paul W. Beamish. "Institutional Environment and Subsidiary Survival." Management International Review 49, no. 3 (June 2009): 291–312. http://dx.doi.org/10.1007/s11575-009-0144-y.
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Gammelgaard, Jens. "Issue Selling and Bargaining Power in Intrafirm Competition: The Differentiating Impact of the Subsidiary Management Composition." Competition & Change 13, no. 3 (September 2009): 214–28. http://dx.doi.org/10.1179/102452909x451341.
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This paper reports the findings from five case studies on Danish-owned subsidiaries in China and India and demonstrates how a subsidiary's issue-selling strategy influences its bargaining power in intrafirm competition within a multinational corporation. Issue-selling strategies of subsidiaries involve various activities aiming at (a) making the parent company understand an issue, (b) attracting parent-company attention to an issue, and (c) lobbying for an issue at the parent company. Next to illustrating these activities, the empirical part of the paper shows that subsidiaries managed by parent-company nationals have more bargaining power than subsidiaries managed by host-country nationals. To begin with, parent-company national subsidiary managers are better at translating the context-specific information deriving from cultural distances between the parent company and the subsidiary. Second, they are better at packaging the issue in order to match parent-company formalised application requirements. Further, they are better at framing the issue to match the parent-company goals and objectives. And last, they often have closer relationships with decision makers within the parent company.
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Garcia-Pont, Carlos, J. Ignacio Canales, and Fabrizio Noboa. "Subsidiary Strategy: The Embeddedness Component." Journal of Management Studies 46, no. 2 (March 2009): 182–214. http://dx.doi.org/10.1111/j.1467-6486.2008.00797.x.
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Ngoasong, Michael Zisuh, Jinmin Wang, Rolv Petter Amdam, and Ove Bjarnar. "The Role of MNE Subsidiaries in the Practice of Global Business Models in Transforming Economies." Management and Organization Review 17, no. 2 (February 15, 2021): 254–81. http://dx.doi.org/10.1017/mor.2020.55.
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ABSTRACTThis study provides new insights into the role of subsidiary managers in the practice of global business models of multinational enterprises in transforming economies. Drawing on the global business model literature and through semi-structured interviews with a leading Norwegian maritime multinational enterprise in China, we have developed and critically explored a theoretical framework for uncovering how subsidiary managers understand and manage the tensions between the headquarters based in a western country and the subsidiaries based in a transforming economy. More specifically, when implementing the global business model in the transforming economy, subsidiary managers need to undertake effective management of structural, behavioural, and cultural tensions along with the global integration-local responsiveness dilemma. Subsidiary managers can contribute to solving structural tensions between the headquarters and subsidiary by undertaking effective market sensing and knowledge transfer activities to integrate the transforming economies into the MNE's global production networks. Meanwhile, they need to make effective relationship management to solve behavioural and cultural tensions.
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Cai, Ming, Zhong Ma, and Youhua Li. "The Effect of the Subsidiary on the Ultimate Controller’s Private Benefits: Enlightenment to the Risk Management Challenges for Sustainability of the Corporate." Sustainability 14, no. 8 (April 18, 2022): 4837. http://dx.doi.org/10.3390/su14084837.
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In a period of uncertainty about economic development, it is particularly important to maintain corporate sustainable growth in order to deal with the risk management challenge of sustainability. Private benefits of control in corporate governance play a crucial role in ensuring corporate financial sustainability to face the risk. The existing literature about private benefits of control mainly focuses on the assumption of absolute control by the ultimate controller, ignoring the influence of subsidiaries. This paper constructs a model of private benefits, based on a framework of the interaction of ultimate controllers and subsidiaries, and investigates how subsidiaries influence the ultimate controller’s expropriation. The model has proposed that: Subsidiary’s self-interest demand can prevent the ultimate controller’s private benefits; the autonomy owned by the subsidiary can be used to allocate resources, inhibiting the private benefits of control to some extent. Further research has found that when the proportion of funds that can be arranged by the subsidiary’s autonomy can meet the proportion of funds required for the subsidiary’s self-interest demand, as the subsidiary’s self-interest demand increases, the ultimate controller’s expropriation is reduced. This paper reveals the internal mechanism that private benefits of control are jointly determined by the ultimate controller and the subsidiary, expands the research on the decision mechanism of private benefits and provides new ideas for understanding the expropriation of the ultimate controller. Additionally, the solution to this problem can provide help and inspiration for risk management challenges for the sustainability of the corporate, as well as provide reference significance for economic sustainability.
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Raziq, Muhammad Mustafa, Felipe Mendes Borini, Martin Perry, and Martina Battisti. "Subsidiary Characteristics and Impact on Subsidiary Strategic and Operational Autonomy." Journal of Transnational Management 18, no. 3 (July 2013): 219–41. http://dx.doi.org/10.1080/15475778.2013.817271.
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Borini, Felipe Mendes, Tereza Leme Fleury, Afonso Carlos Corrêa Fleury, and Moacir de Miranda Oliveira Junior. "The relevance of subsidiary initiatives for Brazilian multinationals." Revista de Administração de Empresas 49, no. 3 (September 2009): 253–65. http://dx.doi.org/10.1590/s0034-75902009000300002.
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The purpose of this paper is to analyze relationship patterns between headquarters and subsidiaries of Brazilian Multinationals Enterprises (BrMNEs). The key construct for that investigation is Subsidiary Initiative, which comprises Subsidiary Entrepreneurial Orientation, Autonomy, Integration, Local Competitive Context and Business Network. A survey was carried out in a sample of 65 subsidiaries of 29 BrMNEs. The main outcome is that subsidiaries are highly integrated and receive Entrepreneurial Orientation from Headquarters (HQs), but Initiative is limited. Actually, the main determinants of subsidiary's initiatives are Local Context and Business Networking in the host country. This apparent paradox may be explained by what we call 'rebellious subsidiaries', which take initiatives based on their business environment and connections, regardless of their HQs' directions or delegation of autonomy.
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Werner, Steve. "Recent Developments in International Management Research: A Review of 20 Top Management Journals." Journal of Management 28, no. 3 (June 2002): 277–305. http://dx.doi.org/10.1177/014920630202800303.
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This review analyzes recent trends in the international management (IM) literature from 1996 to 2000. The 271 articles located in 20 top management (and management related) journals are categorized into 12 distinct topics: (1) the global business environment; (2) internationalization; (3) entry mode decisions; (4) international joint ventures; (5) foreign direct investment (FDI); (6) international exchange; (7) transfer of knowledge; (8) strategic alliances and networks; (9) multinational enterprises; (10) subsidiary-headquarters relations; (11) subsidiary and multinational team management; and (12) expatriate management. Research in each of these areas is presented and linkages between the areas are reviewed. Concluding thoughts are offered relating to the pervasiveness, methodologies, and levels of analysis of IM research, as well as potential areas for future research.
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Peng, Yu-Shu, and Shing-Shiuan Lin. "Local Responsiveness Pressure, Subsidiary Resources, Green Management Adoption and Subsidiary’s Performance: Evidence from Taiwanese Manufactures." Journal of Business Ethics 79, no. 1-2 (April 18, 2007): 199–212. http://dx.doi.org/10.1007/s10551-007-9382-8.
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Kim, Chan Bok, Seong-Jin Choi, and Luyao Zhang. "Determinants of Staff Localization in Headquarters-Subsidiary-Subsidiary Relationships." Sustainability 14, no. 1 (December 27, 2021): 249. http://dx.doi.org/10.3390/su14010249.
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This paper investigates how cultural distance, the local experience of a foreign subsidiary, and the intensity of local competition jointly affect the staff localization of MNEs’ subsidiaries. While previous studies on the effects of cultural distance have mainly focused on the gap between home and host countries, we extend the existing “home-host” country perspective to the home-intermediary-host country relationship. This study regards Korea as an intermediary country and utilizes 520 observations from a unique survey conducted by the Export-Import Bank of Korea from 2006 to 2013. The results suggest that the impact of cultural distance on staff localization is a function of local experience and competitive environment in the home-intermediate-host relationship structure. This paper makes a theoretical contribution to our understanding of the behavior of multinational corporations by expanding the cultural distance perspective between the home and host countries explored in previous research to the home-subsidiary-subsidiary structure.
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Sarabi, Almasa, Fabian J. Froese, Daniel H. M. Chng, and Klaus E. Meyer. "Entrepreneurial leadership and MNE subsidiary performance: The moderating role of subsidiary context." International Business Review 29, no. 3 (June 2020): 101672. http://dx.doi.org/10.1016/j.ibusrev.2020.101672.
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Chatzopoulou, Erifili-Christina, Pavlos Dimitratos, and Spyros Lioukas. "Agency controls and subsidiary strategic initiatives: The mediating role of subsidiary autonomy." International Business Review 30, no. 3 (June 2021): 101807. http://dx.doi.org/10.1016/j.ibusrev.2021.101807.
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