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Headquarters’ Knowledge of Subsidiary Network Contexts in the Multinational Corporation

In: Knowledge, Networks and Power

Author

Listed:
  • Ulf Holm
  • Jan Johanson
  • Peter Thilenius

Abstract

Competence development in the multinational corporation (MNC) is driven by competition in local industrial clusters, and the operating units engaged in those clusters are critical in the development of the MNC, as Porter, Sölvell, and Zander (1990) posit. They assume that the operations of the single, unique subsidiary in relation to its unique industrial setting are critical in the development of the MNC. In this view, competence development is not created by organizational arrangements; rather, it is the outcome of a struggle in the market. But it does not take place in response to general market forces; it is driven by interaction with customers, suppliers, and competitors in the industrial cluster.

Suggested Citation

  • Ulf Holm & Jan Johanson & Peter Thilenius, 2015. "Headquarters’ Knowledge of Subsidiary Network Contexts in the Multinational Corporation," Palgrave Macmillan Books, in: Mats Forsgren & Ulf Holm & Jan Johanson (ed.), Knowledge, Networks and Power, chapter 10, pages 245-263, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-50882-9_10
    DOI: 10.1057/9781137508829_10
    as

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