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A Note on Strategic Renewal and Corporate Venturing in the Subsidiaries of Multinational Enterprises

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  • Alain Verbeke
  • James J. Chrisman
  • Wenlong Yuan

Abstract

The corporate entrepreneurship literature has recently been enriched by Birkinshaw's research on subsidiary initiatives in multinational enterprises (MNEs). In this article, we extend that work by discussing the conceptual and practical importance of distinguishing between strategic renewal and corporate venturing in subsidiaries. We present a set of propositions suggesting that the determinants of the two types of initiatives are different. We conclude with implications for both practitioners and researchers studying entrepreneurship in large MNEs.

Suggested Citation

  • Alain Verbeke & James J. Chrisman & Wenlong Yuan, 2007. "A Note on Strategic Renewal and Corporate Venturing in the Subsidiaries of Multinational Enterprises," Entrepreneurship Theory and Practice, , vol. 31(4), pages 585-600, July.
    • Handle: RePEc:sae:entthe:v:31:y:2007:i:4:p:585-600
    DOI: 10.1111/j.1540-6520.2007.00189.x
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    Cited by:

    1. Ambos, Tina C. & Hughes, Mathew (Mat) & Niemand, Thomas & Kraus, Sascha, 2023. "Subsidiary managers' initiative pursuit: A behavioral agency model," Journal of International Management, Elsevier, vol. 29(3).
    2. David Urbano & Andreu Turro & Mike Wright & Shaker Zahra, 2022. "Corporate entrepreneurship: a systematic literature review and future research agenda," Small Business Economics, Springer, vol. 59(4), pages 1541-1565, December.
    3. Jelena Cerar & Benoit Decreton & Phillip C. Nell, 2023. "What's in a Name? How Senior Managers use Name‐Based Heuristics to Allocate Financial Resources in Multinational Corporations," Journal of Management Studies, Wiley Blackwell, vol. 60(5), pages 1147-1177, July.
    4. Kamal Sakhdari & Jahangir Yadollahi Farsi, 2016. "Business partners and corporate entrepreneurship in developing countries," International Journal of Management and Enterprise Development, Inderscience Enterprises Ltd, vol. 15(1), pages 61-77.
    5. Williams, Christopher & Lee, Soo Hee, 2011. "Entrepreneurial contexts and knowledge coordination within the multinational corporation," Journal of World Business, Elsevier, vol. 46(2), pages 253-264, April.
    6. Schmid, Stefan & Dzedek, Lars R. & Lehrer, Mark, 2014. "From Rocking the Boat to Wagging the Dog: A Literature Review of Subsidiary Initiative Research and Integrative Framework," Journal of International Management, Elsevier, vol. 20(2), pages 201-218.
    7. Covin, Jeffrey G. & Garrett, Robert P. & Kuratko, Donald F. & Shepherd, Dean A., 2015. "Value proposition evolution and the performance of internal corporate ventures," Journal of Business Venturing, Elsevier, vol. 30(5), pages 749-774.
    8. Tippmann, Esther & Sharkey Scott, Pamela & Reilly, Marty & O’Brien, Donal, 2018. "Subsidiary coopetition competence: Navigating subsidiary evolution in the multinational corporation," Journal of World Business, Elsevier, vol. 53(4), pages 540-554.
    9. Evelien P. M. Croonen & Maryse J. Brand & Eelko K. R. E. Huizingh, 2016. "To be entrepreneurial, or not to be entrepreneurial? Explaining differences in franchisee entrepreneurial behavior within a franchise system," International Entrepreneurship and Management Journal, Springer, vol. 12(2), pages 531-553, June.
    10. Chatzopoulou, Erifili-Christina & Dimitratos, Pavlos & Lioukas, Spyros, 2021. "Agency controls and subsidiary strategic initiatives: The mediating role of subsidiary autonomy," International Business Review, Elsevier, vol. 30(3).
    11. Gorgijevski, Alexander N. & Andrews, Daniel S., 2022. "Getting the seal of approval: Pathways to subsidiary initiative acceptance," Journal of International Management, Elsevier, vol. 28(2).
    12. Reilly, Marty & Scott, Pamela Sharkey & Tippmann, Esther & Mangematin, Vincent, 2023. "Sustaining competence creation in the multinational enterprise: The role of piloting in subsidiaries," Journal of International Management, Elsevier, vol. 29(3).
    13. Gorgijevski, Alexander & Holmström Lind, Christine & Lagerström, Katarina, 2019. "Does proactivity matter? the importance of initiative selling tactics for headquarters acceptance of subsidiary initiatives," Journal of International Management, Elsevier, vol. 25(4).
    14. Deryck J Van Rensburg, 2015. "The Promise of Corporate Entrepreneurship: A Review of Data Analytic Strategies," Business and Management Research, Business and Management Research, Sciedu Press, vol. 4(1), pages 59-73, March.
    15. Andreas P. Distel & Wolfgang Sofka & Pedro de Faria & Miguel Torres Preto & António Sérgio Ribeiro, 2022. "Dynamic capabilities for hire – How former host-country entrepreneurs as MNC subsidiary managers affect performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(4), pages 657-688, June.
    16. Keramidas Olivier & Ekaterina Le Pennec & Sarah Serval, 2016. "Caractériser l'attractivité d'un territoire, une approche par les ressources : Le cas de 5 EMN européennes nouvellement implantées dans la région de Kalouga en Russie," Post-Print hal-01615457, HAL.
    17. Riviere, Monica & Suder, Gabriele & Bass, A. Erin, 2018. "Exploring the role of internationalization knowledge in fostering strategic renewal: A dynamic capabilities perspective," International Business Review, Elsevier, vol. 27(1), pages 66-77.
    18. Francisco J. Saez-Martinez & Angela Gonzalez-Moreno, 2011. "Strategic Renewal, Cooperation, and Performance:A Contingency Approach," Journal of Management and Strategy, Journal of Management and Strategy, Sciedu Press, vol. 2(4), pages 43-55, December.
    19. de Jong, Gjalt & van Dut, Vo & Jindra, Björn & Marek, Philipp, 2015. "Does country context distance determine subsidiary decision-making autonomy? Theory and evidence from European transition economies," International Business Review, Elsevier, vol. 24(5), pages 874-889.

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