Subsidiary strategy: The embeddedness component
AbstractThis paper inductively derives a model that develops the concept of subsidiary embeddedness as the canvas within which subsidiary strategy can take place. Our model identifies three hierarchical levels of embeddedness: Operational embeddedness relates to the interlocking day-to-day relations. Capability embeddedness deals with the development of competitive capabilities for the multinational as a whole. Strategic embeddedness deals with subsidiary participation in the MNC strategy setting. We deem these three types of embeddedness as ways to develop subsidiary strategic alternatives. In as such, different types of subsidiary embeddedness imply different subsidiary roles. Embeddedness, as it was inductively derived from a revelatory case study, is not merely an outcome of the institutional setting, but a resource a subsidiary can manage by means of manipulating dependencies or exerting influence over the allocation of critical resources. A subsidiary can modify its embeddedness to change its strategic restraints. Therefore, the development of subsidiary embeddedness becomes an integral part of subsidiary strategy.
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 IESE Business School in its series IESE Research Papers with number D/699.
Length: 26 pages
Date of creation: 09 Jul 2007
Date of revision:
Multinational management; subsidiary; strategy; organization;
Other versions of this item:
- NEP-ALL-2007-10-27 (All new papers)
- NEP-CSE-2007-10-27 (Economics of Strategic Management)
- NEP-PPM-2007-10-27 (Project, Program & Portfolio Management)
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.:
- Subramaniam, Mohan & Watson, Sharon, 2006. "How interdependence affects subsidiary performance," Journal of Business Research, Elsevier, vol. 59(8), pages 916-924, August.
- Taggart, James & Hood, Neil, 1999. "Determinants of autonomy in multinational corporation subsidiaries," European Management Journal, Elsevier, vol. 17(2), pages 226-236, April.
- Birkinshaw, Julian & Hood, Neil & Young, Stephen, 2005. "Subsidiary entrepreneurship, internal and external competitive forces, and subsidiary performance," International Business Review, Elsevier, vol. 14(2), pages 227-248, April.
- Andersson, Ulf & Forsgren, Mats, 1996. "Subsidiary embeddedness and control in the multinational corporation," International Business Review, Elsevier, vol. 5(5), pages 487-508, October.
- Wim Vanhaverbeke & Victor Gilsing & Bonnie Beerkens & Geert Duysters, 2009.
"The Role of Alliance Network Redundancy in the Creation of Core and Non-core Technologies,"
Journal of Management Studies,
Wiley Blackwell, vol. 46(2), pages 215-244, 03.
- Vanhaverbeke, W.P.M. & Gilsing, V.A. & Beerkens, B.E. & Duijsters, G.M., 2009. "The role of alliance network redundancy in the creation of core and non-core technologies," Open Access publications from Tilburg University urn:nbn:nl:ui:12-3295984, Tilburg University.
- Vanhaverbeke, Wim & Gilsing, Victor & Beerkens, Bonnie & Duysters, Geert, 2009. "The role of alliance network redundancy in the creation of core and non-core technologies," Open Access publications from Maastricht University urn:nbn:nl:ui:27-23361, Maastricht University.
- Yamin, Mo & Andersson, Ulf, 2011. "Subsidiary importance in the MNC: What role does internal embeddedness play?," International Business Review, Elsevier, vol. 20(2), pages 151-162, April.
- Nell, Phillip C. & Ambos, Bjérn & Schlegelmilch, Bodo B., 2011. "The MNC as an externally embedded organization: An investigation of embeddedness overlap in local subsidiary networks," Journal of World Business, Elsevier, vol. 46(4), pages 497-505, October.
- Gammelgaard, Jens & McDonald, Frank & Stephan, Andreas & Tüselmann, Heinz & Dörrenbächer, Christoph, 2012. "The impact of increases in subsidiary autonomy and network relationships on performance," International Business Review, Elsevier, vol. 21(6), pages 1158-1172.
- Paulo Figueiredo & Klauber Brito, 2011. "The innovation performance of MNE subsidiaries and local embeddedness: evidence from an emerging economy," Journal of Evolutionary Economics, Springer, vol. 21(1), pages 141-165, February.
- Chen, Tain-Jy & Chen, Homin & Ku, Ying-Hua, 2012. "Resource dependency and parent–subsidiary capability transfers," Journal of World Business, Elsevier, vol. 47(2), pages 259-266.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Silvia Jimenez).
If references are entirely missing, you can add them using this form.