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Determining Factors of Subsidiary Development

In: Multinationals, Clusters and Innovation

Author

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  • Torben Pedersen

Abstract

The literature on subsidiary development has greatly expanded over the last 20 years, evaluating the dynamics behind the evolution of subsidiary roles. The literature emerged out of a critique of the traditional ‘center-periphery’ view where the firm-specific advantages are developed and controlled by the parent company, while the foreign subsidiaries are the long-arm of the parent company in exploiting the firm-specific advantages in the local market. The observation that some subsidiaries have a strategic role in the multinational corporation (MNC) that reaches beyond their local undertakings (e.g. Étemad and Dulude, 1986; Bartlett and Ghoshal, 1989; Gupta and Govindarajan, 1994) was the starting point of research on different subsidiary roles and the evolution of subsidiary roles.

Suggested Citation

  • Torben Pedersen, 2006. "Determining Factors of Subsidiary Development," Palgrave Macmillan Books, in: Ana Teresa Tavares & Aurora Teixeira (ed.), Multinationals, Clusters and Innovation, chapter 9, pages 145-159, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-0-230-62494-8_9
    DOI: 10.1057/9780230624948_9
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    Cited by:

    1. Dimitratos, Pavlos & Liouka, Ioanna & Young, Stephen, 2009. "Regional location of multinational corporation subsidiaries and economic development contribution: Evidence from the UK," Journal of World Business, Elsevier, vol. 44(2), pages 180-191, April.
    2. Costa, Ionara & Filippov, Sergey, 2007. "A New Nexus Between Foreign Direct Investment, Industrial and Innovation Policies," MERIT Working Papers 2007-030, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    3. Andrzej Cieślik & Jan Jakub Michałek & Krzysztof Szczygielski & Jacek Lewkowicz & Jerzy Mycielski, 2021. "Foreign Ownership and Within-MNEs GVC Participation as Determinants of Innovation Activities: A CIS-Based Firm-Level Analysis," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 13(2), pages 189-211, June.

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