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Fighting for power: The strategy of global MNCs' subsidiaries

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  • Garcia-Pont, Carlos

    ()
    (IESE Business School)

  • Noboa, Fabrizio

    ()
    (IESE Business School)

Abstract

The purpose of this paper is to examine the relational configurations of a subsidiary that belongs to a global industry such as auto components manufacture. As global integration pressures are high in this environment, there are pressures for centralization and some subsidiaries are losing resources and capabilities to the benefit of headquarters or other subsidiaries. Consequently, they may fight within the MNC to retain control over certain resources and capabilities, mainly by building strong relationships with local suppliers, providers, customers or other units of the MNC that may reach global relevance. While previous studies have identified the significance of networks as a metaphor for understanding MNC structure, in this paper we attempt to show how analysis of a subsidiary's networks of contacts can be a useful tool to identify the role the subsidiary is playing in the multinational as a whole. It shows how networks can be used by the subsidiary as a tool to proactively develop a formulated strategy.

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Bibliographic Info

Paper provided by IESE Business School in its series IESE Research Papers with number D/489.

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Length: 21 pages
Date of creation: 25 Jan 2003
Date of revision:
Handle: RePEc:ebg:iesewp:d-0489

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Postal: IESE Business School, Av Pearson 21, 08034 Barcelona, SPAIN
Web page: http://www.iese.edu/
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Related research

Keywords: subsidiary; relationship network; resource configuration; auto components;

This paper has been announced in the following NEP Reports:

References

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  1. 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.
  2. Jon I Martinez & J Carlos Jarillo, 1989. "The Evolution of Research on Coordination Mechanisms in Multinational Corporations," Journal of International Business Studies, Palgrave Macmillan, vol. 20(3), pages 489-514, September.
  3. 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.
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