The Development of Network Relations of MNC Subsidiaries: How Internal MNC and External (Local) Relations Evolve
AbstractManaging relations is a complex task for internationalizing firms and their subsidiaries: MNC subsidiaries are not only part of the MNC network but they also develop relations with network actors in their local environment.This paper investigates conceptually how MNC subsidiaries established through generic expansion build relations within the MNC and with external market and non-market actors as they evolve through stages of start-up, growth and maturity.The paper develops propositions, grounded in institutional theory, resource dependency theory and network approaches, on the changing strength and importance of a subsidiary's relations depending on its dependence or interdependence in these relations, with five groups of actors (MNC headquarters, other subsidiaries within the MNC, local business actors, local government and non-government organizations).The paper ends with drawing directions for future work that will enhance understanding of the dynamics of relationship management in MNC subsidiaries.
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.
Bibliographic InfoPaper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2005-128.
Date of creation: 2005
Date of revision:
Contact details of provider:
Web page: http://center.uvt.nl
multinational companies; MNC management; HQ-subsidiary relations; networks; institutional theory;
Find related papers by JEL classification:
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-01-24 (All new papers)
- NEP-INO-2006-01-24 (Innovation)
- NEP-SOC-2006-01-24 (Social Norms & Social Capital)
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.:
- Doh, Jonathan P. & Teegen, Hildy, 2002. "Nongovernmental organizations as institutional actors in international business: theory and implications," International Business Review, Elsevier, vol. 11(6), pages 665-684, December.
- Phene, Anupama & Almeida, Paul, 2003. "How do firms evolve? The patterns of technological evolution of semiconductor subsidiaries," International Business Review, Elsevier, vol. 12(3), pages 349-367, 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.
- Donald J Lecraw, 1984. "Bargaining Power, Ownership, and Profitability of Transnational Corporations in Developing Countries," Journal of International Business Studies, Palgrave Macmillan, vol. 15(1), pages 27-43, March.
- Paterson, S. L. & Brock, D. M., 2002. "The development of subsidiary-management research: review and theoretical analysis," International Business Review, Elsevier, vol. 11(2), pages 139-163, April.
- Robert E. Quinn & Kim Cameron, 1983. "Organizational Life Cycles and Shifting Criteria of Effectiveness: Some Preliminary Evidence," Management Science, INFORMS, vol. 29(1), pages 33-51, January.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Richard Broekman).
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.