Subsidiary role development: The effect of micro-political headquarters-subsidiary negotiations on the product, market and value-added scope of foreign-owned subsidiaries
AbstractThis paper focuses on subsidiary role development in terms of changes in the market, product and value-added scope of foreign subsidiaries within multinational corporations (MNC). In its theoretical part, it identifies three interrelated reasons to explain such role changes: (1) subsidiary capabilities, (2) host-country localization advantages and (3) headquarters' realized strategies--that is, headquarters' intended strategies and the outcomes of micro-political headquarter-subsidiary negotiations. Based on the results of interviews with 65 managers in 11 German headquarters and their 13 Hungarian subsidiaries, the paper reveals the interrelated effects of the three factors on subsidiary role development and shows that headquarters' intended strategies are decisive to explain role development in peripheral host countries, though micro-political headquarter-subsidiary negotiations being an integral part of subsidiary role development.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of International Management.
Volume (Year): 12 (2006)
Issue (Month): 3 (September)
Contact details of provider:
Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/601266/description#description
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Birkinshaw, Julian & Hood, Neil & Young, Stephen, 2005. "Subsidiary entrepreneurship, internal and external competitive forces, and subsidiary performance," International Business Review, Elsevier, vol. 14(2), pages 227-248, April.
- Dörrenbächer, Christoph & Gammelgaard, Jens, 2006. "Subsidiary redefinition: Charter loss in a German-owned subsidiary in Hungary," Discussion Papers, Research Unit: Internationalization and Organization SP III 2006-201, Social Science Research Center Berlin (WZB).
- Klaus E. Meyer & Enese Lieb-Dóczy, 2003. "Post-Acquisition Restructuring as Evolutionary Process," Journal of Management Studies, Wiley Blackwell, vol. 40(2), pages 459-482, 03.
- Pearce, Robert, 1999. "The evolution of technology in multinational enterprises: the role of creative subsidiaries," International Business Review, Elsevier, vol. 8(2), pages 125-148, April.
- Alan M. Rugman & Sheila Douglas, 1986. "The Strategic Management of Multinationals and World Product Mandating," Canadian Public Policy, University of Toronto Press, vol. 12(2), pages 320-328, June.
- Julian Birkinshaw, 1996. "How Multinational Subsidiary Mandates are Gained and Lost," Journal of International Business Studies, Palgrave Macmillan, vol. 27(3), pages 467-495, September.
- Hood, Neil & Young, Stephen & Lal, David, 1994. "Strategic evolution within Japanese manufacturing plants in Europe: UK evidence," International Business Review, Elsevier, vol. 3(2), pages 97-122, June.
- Julian Birkinshaw & Neil Hood, 2000. "Characteristics of Foreign Subsidiaries in Industry Clusters," Journal of International Business Studies, Palgrave Macmillan, vol. 31(1), pages 141-154, March.
- Thomas W Malnight, 1996. "The Transition from Decentralized to Network-Based MNC Structures: An Evolutionary Perspective," Journal of International Business Studies, Palgrave Macmillan, vol. 27(1), pages 43-65, March.
- Ulf Holm & Anders Malmberg & Orjan S–lvell, 2003. "Subsidiary impact on host-country economies--the case of foreign-owned subsidiaries attracting investment into sweden," Journal of Economic Geography, Oxford University Press, vol. 3(4), pages 389-408, October.
- Forsgren, Mats, 1990. "Managing the international multi-centre firm: Case studies from Sweden," European Management Journal, Elsevier, vol. 8(2), pages 261-267, June.
- Welch, Catherine & Marschan-Piekkari, Rebecca & Penttinen, Heli & Tahvanainen, Marja, 2002. "Corporate elites as informants in qualitative international business research," International Business Review, Elsevier, vol. 11(5), pages 611-628, October.
- Birkinshaw, Julian & Ridderstråle, Jonas, 1999. "Fighting the corporate immune system: a process study of subsidiary initiatives in multinational corporations," International Business Review, Elsevier, vol. 8(2), pages 149-180, April.
- Jindra, Björn & Giroud, Axèle & Scott-Kennel, Joanna, 2009. "Subsidiary roles, vertical linkages and economic development: Lessons from transition economies," Journal of World Business, Elsevier, vol. 44(2), pages 167-179, April.
- Schotter, Andreas & Beamish, Paul W., 2011. "Performance effects of MNC headquarters-subsidiary conflict and the role of boundary spanners: The case of headquarter initiative rejection," Journal of International Management, Elsevier, vol. 17(3), pages 243-259, September.
- Gnyawali, Devi R. & Singal, Manisha & Mu, Shaohua "Carolyn", 2009. "Knowledge ties among subsidiaries in MNCs: A multi-level conceptual model," Journal of International Management, Elsevier, vol. 15(4), pages 387-400, December.
- Williams, Christopher & Lee, Soo Hee, 2009. "International management, political arena and dispersed entrepreneurship in the MNC," Journal of World Business, Elsevier, vol. 44(3), pages 287-299, July.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wendy Shamier).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.