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Technology Sourcing in Multinational Enterprises and the Roles of Subsidiaries: An Empirical Investigation

In: The Strategic Development of Multinationals

Author

Listed:
  • Dimitris Manolopoulos

    (Athens University of Economics and Business)

  • Marina Papanastassiou

    (Copenhagen Business School)

  • Robert Pearce

    (University of Reading)

Abstract

This chapter views the Multinational Enterprise (MNE) as a differentiated learning network with subsidiaries playing a critical role in managing knowledge (Gupta and Govindarajan, 2000; Birkinshaw et al, 1998). Today, rather than accepting predetermined roles, subsidiaries are asked to actively engage in developing their operations and explore procedures that would increase the efficacy of the whole MNE network (Birkinshaw, 1996; Crookell and Morrison, 1990). Building on recent advances regarding the strategic evolution of subsidiary roles, we argue that the MNE is a vehicle for integrating knowledge generated internally and externally from its global operations (Bartlett and Ghoshal, 1989). There are many cases of subsidiaries that perform specific value-added activities, which are fundamentally ‘embedded’ in their respective host-countries’ knowledge systems (evidence is provided by Kuemmerle, 1999a; Dunning, 1996; Jarillo and Martinez, 1990).

Suggested Citation

  • Dimitris Manolopoulos & Marina Papanastassiou & Robert Pearce, 2009. "Technology Sourcing in Multinational Enterprises and the Roles of Subsidiaries: An Empirical Investigation," Palgrave Macmillan Books, in: The Strategic Development of Multinationals, chapter 4, pages 57-77, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-25048-2_4
    DOI: 10.1057/9780230250482_4
    as

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