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Centres of Excellence in the International Firm

In: Multinational Corporate Evolution and Subsidiary Development

Author

Listed:
  • Luciano Fratocchi
  • Ulf Holm

Abstract

In the last decade there has been increasing recognition that the international firm (in the strict sense of one with operations in both national and international markets) is organised as a heterogeneous entity built up of subunits with specific operative responsibilities and specific interrelated roles (Hedlund, 1986; Bartlett and Ghoshal, 1989; Nohria and Ghoshal, 1994; Malnight, 1996). Thus, certain subsidiaries within the international firm are regarded as being especially competent in one or several functional areas. For instance, because of its competence with a particular product, a foreign subsidiary can become globally responsible for production. Similarly, another subsidiary can be specialised in the development of a product, while a third can have responsibility for marketing and international sales. Having one or several operational competences — interrelated with the operational roles of other units of the firm — the specific subsidiary can become a strategic ‘partner’ of the firm’s headquarters (Bartlett and Ghoshal, 1989), with potential impact on strategic decisions (Astley and Zajac, 1990; Ghoshal and Bartlett, 1990).

Suggested Citation

  • Luciano Fratocchi & Ulf Holm, 1998. "Centres of Excellence in the International Firm," Palgrave Macmillan Books, in: Julian Birkinshaw & Neil Hood (ed.), Multinational Corporate Evolution and Subsidiary Development, chapter 8, pages 189-209, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-26467-4_8
    DOI: 10.1007/978-1-349-26467-4_8
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    Citations

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    Cited by:

    1. Yamin, Mo. & Otto, Juliet, 2004. "Patterns of knowledge flows and MNE innovative performance," Journal of International Management, Elsevier, vol. 10(2), pages 239-258.
    2. Rubini, Lauretta & Pollio, Chiara & Spigarelli, Francesca & Lv, Ping, 2021. "Regional social context and FDI. An empirical investigation on Chinese acquisitions in Europe," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 402-415.
    3. Jutta Günther & Johannes Stephan & Björn Jindra, 2008. "Foreign Subsidiaries in the East German Innovation System - Evidence from Manufacturing Industries," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 59(Supplemen), pages 137-172.
    4. Yvonne Ho & Hongjen Chiu, 2013. "A social network analysis of leading semiconductor companies’ knowledge flow network," Asia Pacific Journal of Management, Springer, vol. 30(4), pages 1265-1283, December.
    5. Hobday, Michael & Rush, Howard, 2007. "Upgrading the technological capabilities of foreign transnational subsidiaries in developing countries: The case of electronics in Thailand," Research Policy, Elsevier, vol. 36(9), pages 1335-1356, November.

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