sense that subsidiaries have access to different types of resources and therefore perform

differently in its market-place and within the MNC. Yet, even though subsidiaries are the object

of intense interests, remarkably little have been written about assessment of subsidiary

performance. In short, the possibilities of subsidiaries seem to generate more attention in the

literature than their results. The two distinctive features of this paper lie in the development of the

concept of subsidiary performance and the exploration of the linkage between subsidiary

embeddedness and performance. More specifically, by drawing on literature about organizational

learning, absorptive capacity and embeddedness in business relationships, some hypotheses will

be formulated about the casual link between subsidiary environment and subsidiary performance.

The hypotheses are tested in an LISREL-model based on data of 98 subsidiaries belonging to

Swedish multinationals.

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Paper provided by Copenhagen Business School, Department of International Economics and Management in its series Working Papers with number 3-1999.

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Length: 32 pages
Date of creation: 29 May 1999
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Handle: RePEc:hhb:cbsint:1999-003

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Related research

Keywords: MNC subsidiaries Sweden

References listed on IDEAS
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1. John H Dunning, 1988. "The Eclectic Paradigm of International Production: A Restatement and Some Possible Extensions," Journal of International Business Studies, Palgrave Macmillan Journals, vol. 19(1), pages 1-31, March. [Downloadable!] (restricted)

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