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The managerial network in a multinational enterprise and the resource profiles of subsidiaries

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  • Manev, Ivan M.

Abstract

This paper studies how the managerial network in a multinational enterprise (MNE) influences the resource profiles of its subsidiaries. The network view of the MNE and the recent literature on MNE subsidiaries provide bases for suggesting two distinct mechanisms through which the managerial network exercises an impact: isomorphism of resource allocation practices and horizontal specialization. The theoretical predictions are tested with data about the network of lateral ties among subsidiary managers in a private nonprofit MNE and the budget allocations in its subsidiaries. Results indicate qualified support for isomorphism and strong support for specialization. When managers interact in a network, their decisions for resource allocation within their subsidiaries may influence the MNE resource configuration across subsidiaries as well.

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  • Manev, Ivan M., 2003. "The managerial network in a multinational enterprise and the resource profiles of subsidiaries," Journal of International Management, Elsevier, vol. 9(2), pages 133-151.
    • Handle: RePEc:eee:intman:v:9:y:2003:i:2:p:133-151
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    1. Ming Cai & Zhong Ma & Youhua Li, 2022. "The Effect of the Subsidiary on the Ultimate Controller’s Private Benefits: Enlightenment to the Risk Management Challenges for Sustainability of the Corporate," Sustainability, MDPI, vol. 14(8), pages 1-15, April.
    2. Hsi-Mei Chung & Sven Dahms & Pao T. Kao, 2021. "Emerging Market Multinational Family Business Groups and the Use of Family Managers in Foreign Subsidiaries," Management International Review, Springer, vol. 61(1), pages 57-89, March.
    3. Scott, Pamela & Gibbons, Patrick & Coughlan, Joseph, 2010. "Developing subsidiary contribution to the MNC--Subsidiary entrepreneurship and strategy creativity," Journal of International Management, Elsevier, vol. 16(4), pages 328-339, December.
    4. Buchnea, Emily & Elsahn, Ziad, 2022. "Historical social network analysis: Advancing new directions for international business research," International Business Review, Elsevier, vol. 31(5).
    5. 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.

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