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Multinational Subsidiary Evolution: Capability and Charter Change in Foreign-Owned Subsidiary Companies (1998)

In: The Multinational Subsidiary

Author

Listed:
  • Julian Birkinshaw
  • Neil Hood

Abstract

There has been a profound evolution in thinking about multinational corporations (MNCs) [since the late 1980s]. Traditionally, in academic models researchers assumed that ownership-specific advantages were developed at the corporate headquarters and leveraged overseas through the transfer of technology to a network of foreign subsidiaries (Vernon, 1966; Dunning, 1981). As these overseas subsidiaries grew in size and developed their own unique resources, however, it became apparent to many researchers that corporate headquarters was no longer the sole source of competitive advantage for the MNC. Scholars developed models such as the heterarchy (Hedlund, 1986) and the transnational (Bartlett and Ghoshal, 1989) to reflect the critical role played by many subsidiaries in their corporations’ competitiveness, and research attention began to shift toward understanding the new roles played by subsidiaries.

Suggested Citation

  • Julian Birkinshaw & Neil Hood, 2003. "Multinational Subsidiary Evolution: Capability and Charter Change in Foreign-Owned Subsidiary Companies (1998)," Palgrave Macmillan Books, in: The Multinational Subsidiary, chapter 11, pages 222-255, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-51080-7_11
    DOI: 10.1057/9780230510807_11
    as

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