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Developing subsidiary contribution to the MNC--Subsidiary entrepreneurship and strategy creativity

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  • Scott, Pamela
  • Gibbons, Patrick
  • Coughlan, Joseph
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    Abstract

    Despite its theoretical and managerial significance, subsidiary entrepreneurship and its effects on subsidiary contribution remain underexplored in the literature. We propose that subsidiary entrepreneurship encourages more creative strategic responses to escalating environmental change. We explore the direct and mediating effects of subsidiary entrepreneurship on subsidiary contribution to the MNC, particularly subsidiary strategy creativity. We use structural equation modelling to test our propositions on data generated from surveying the population of Irish subsidiaries of foreign MNCs, and find strong support for our theoretical predictions. The managerial implications of subsidiary entrepreneurship in generating creative strategy, prompting strategic initiatives and improving performance are discussed.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of International Management.

    Volume (Year): 16 (2010)
    Issue (Month): 4 (December)
    Pages: 328-339

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    Handle: RePEc:eee:intman:v:16:y:2010:i:4:p:328-339

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    Related research

    Keywords: Subsidiary Entrepreneurship Strategy creativity Strategic initiative Performance;

    References

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    Cited by:
    1. Hill, T.L. & Mudambi, Ram, 2010. "Far from Silicon Valley: How emerging economies are re-shaping our understanding of global entrepreneurship," Journal of International Management, Elsevier, vol. 16(4), pages 321-327, December.

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