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Subsidiary Development in German and Japanese Manufacturing Subsidiaries in the British Isles


  • Neil Hood
  • James Taggart


HOOD N. and TAGGART J. H. (1999) Subsidiary development in German and Japanese manufacturing subsidiaries in the British Isles, Reg. Studies 33 , 513-528. Within the context of the role which inward investment plays in economic growth, this paper compares subsidiary development patterns in German and Japanese manufacturing subsidiaries in the British Isles. It is based on a sample of 177 companies which were surveyed in 1994/95, 35 of which were followed up by interviews over the same period. Based on the literature on subsidiary development, and especially on the role of strategic choice open to local management, a series of hypotheses are tested on subsidiary roles and decision-making status. Finally, and based on the comparative evidence, economic development policy issues are examined from three different perspectives, namely development agencies, multinational companies and subsidiary managers. HOOD N. et TAGGART J. H. (1999) Le developpement subsidiaire dans les filiales industrielles allemandes et japonaises situees au Royaume-Uni, Reg. Studies 33 , 513- 528. Dans le contexte du role que joue l'investissement direct etranger dans la croissance economique, cet article compare les modes de developpement subsidiaire dans les filiales industrielles allemandes et japonaises situees au RoyaumeUni. Les donnees proviennent d'une enquete menee en 1994/95 aupres de 177 entreprises, dont 35 avaient ete interviewees au cours de la meme periode. A partir de la documentation sur le developpement subsidiaire, et surtout a proposdu role du choix strategique qui s'offre a la direction locale, on soumet les roles subsidiaires et la prise de decision a une serie d'hypotheses. Pour conclure, et a partir des preuves comparatives, on examine sous trois angles differents des questions de politique quant au developpement economique, a savoir les societes de developpement, les multinationales et les managers des filiales. HOOD N. und TAGGART J.H.(1999)Zweigstellenentwicklung in deutschen und japanischen herstellenden Zweigniederlassungen auf den Britischen Inseln, Reg. Studies 33 , 513-528. Dieser Aufsatz vergleicht Zweigstellenentwicklungen deutscher und japanischerherstellenderZweigstellenbetriebe auf den Britischen Inseln im Zusammenhang mit der Rolle, die Investitionen aus dem Ausland im Wirtschaftswachstum spielen. Er stutzt sich auf eine Stichprobe von 177 Firmen, die im Jahre 1994-95 begutachtet wurden, von denen im gleichen Zeitraum 35 mittels Interviews weiter nachgegangen wurde. Auf der Grundlage von Literatur uber Entwicklung von Zweigstellen und besonders uber die Rolle strategischer Entscheidungen, die der Geschaftsleitung am Orte offenstehen, wird eine Serie von Hypothesen betreff Rollen von Zweigstellen und Entscheidungen fallendem Status aberpruft. Abschliessend, und auf Grund vergleichenden Beweismaterials werden sich ergebende Fragen wirtschaftlicher Entwicklungspolitik aus drei verschiedenen Perspektiven untersucht: der der Entwicklungsgeschaftsstellen, der multinationalen Gesellschaften und der Zweigstellenleiter.

Suggested Citation

  • Neil Hood & James Taggart, 1999. "Subsidiary Development in German and Japanese Manufacturing Subsidiaries in the British Isles," Regional Studies, Taylor & Francis Journals, vol. 33(6), pages 513-528.
  • Handle: RePEc:taf:regstd:v:33:y:1999:i:6:p:513-528
    DOI: 10.1080/00343409950078215

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    References listed on IDEAS

    1. Hood, Neil & Young, Stephen & Lal, David, 1994. "Strategic evolution within Japanese manufacturing plants in Europe: UK evidence," International Business Review, Elsevier, vol. 3(2), pages 97-122, June.
    2. Buckley, Peter J. & Smith, Gordon E., 1994. "An international comparison of the structure of national foreign market servicing strategies," International Business Review, Elsevier, vol. 3(1), pages 71-94, March.
    3. Hood, Neil & Reeves, Alan & Young, Stephen, 1981. "Foreign Direct Investment in Scotland: The European Dimension," Scottish Journal of Political Economy, Scottish Economic Society, vol. 28(2), pages 165-185, June.
    4. Hood, Neil & Truijens, Thorsten, 1993. "European locational decisions of Japanese manufacturers: Survey evidence on the case of the UK," International Business Review, Elsevier, vol. 2(1), pages 39-63.
    5. James H Taggart, 1997. "Autonomy and Procedural Justice: A Framework for Evaluating Subsidiary Strategy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 28(1), pages 51-76, March.
    6. Neil Hood & James Taggart, 1997. "German Foreign Direct Investment in the UK and Ireland: Survey Evidence," Regional Studies, Taylor & Francis Journals, vol. 31(2), pages 139-150.
    7. Taggart, J. H., 1996. "Multinational manufacturing subsidiaries in Scotland: Strategic role and economic impact," International Business Review, Elsevier, vol. 5(5), pages 447-468, October.
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    Cited by:

    1. Johnson, William H.A. & Medcof, John W., 2007. "Motivating proactive subsidiary innovation: Agent-based theory and socialization models in global R&D," Journal of International Management, Elsevier, vol. 13(4), pages 472-487, December.
    2. Dörrenbächer, Christoph & Gammelgaard, Jens, 2006. "Subsidiary role development: The effect of micro-political headquarters-subsidiary negotiations on the product, market and value-added scope of foreign-owned subsidiaries," Journal of International Management, Elsevier, vol. 12(3), pages 266-283, September.
    3. 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.


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