Subsidiary influence on strategic behaviour in MNCs: an empirical study

Andersson, Ulf; Pahlberg, Cecilia

doi:10.1016/s0969-5931(97)00006-1

Cited by 44 publications

(20 citation statements)

References 13 publications

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“…Ghoshal and Bartlett (1990) raised the concept of 'within density' and 'across density' to demonstrate the distribution of a MNC's internal power and resource configuration. The concepts are in line with that of embeddedness, which was put forward by scholars of international cooperation (Andersson and Pahlberg, 1997;Andersson and Forsgern, 1996). The study's proposition is that the MNC network perspective and federation perspective can be used to describe the behaviour of a MNC organization, revealing that MNCs have a form that is both unitary and federative in organizational structure (Ghoshal and Bartlett, 1990), but more towards a unitary organisation.…”

Section: Journal Of Management Researchsupporting

confidence: 54%

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Major determinants affecting the autonomy of multi national corporation subsidiaries in China

Tong¹,

Wong²,

Kwok³

2011

jmr

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In recent years, studies of multi-national corporations (MNC) have shifted their focus from the perspective of the MNC itself to the perspective of transnational networks, which has resulted in greater recognition of the role and function of MNC subsidiaries. China's membership of World Trade Organization has offered more opportunities for MNC in China with the consequence that many of their subsidiaries have become international players where subsidiary autonomy is considered an essential competency. World famous MNCs set up subsidiaries in succession to occupy a market share in China. Therefore, it is worthy to study MNCs' Chinese subsidiaries' behaviour. This quantitative study therefore examined the role ISSN 1941-899X 2012 www.macrothink.org/jmr 2 and autonomy of MNC subsidiaries in China and their relationship with their parent corporations. This quantitative study analysed the way in which the literature on subsidiary autonomy has evolved and identified determinates of such autonomy. The findings revealed that there are correlations between MNC procedure justice, subsidiary integration, subsidiary local responsiveness, and subsidiary relative capability and their influence on subsidiary autonomy. This suggests that the role of a subsidiary is highly influenced by its position in the MNC network. Journal of Management Research

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Section: Journal Of Management Researchsupporting

confidence: 54%

“…For example, a large amount of knowledge and resources are obtained in the host country of subsidiaries. A study of resource channels flows and how they facilitate local learning and global application could be useful (Andersson and Pahlberg, 1997).…”

Section: Limitations and Future Research Directionsmentioning

confidence: 99%

Major determinants affecting the autonomy of multi national corporation subsidiaries in China

Tong¹,

Wong²,

Kwok³

2011

jmr

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“…strategic choice can be achieved in various forms and may even consist of divergent elements. For subsidiaries, the most important elements of strategic choice are their ability to take strategic decisions independently, to have bargaining power over other actors or to possess critical strategic resources (astley and sachdeva 1984;andersson and Pahlberg 1997;Birkinshaw 1997). headquarters grant strategic choice as they are reliant on subsidiaries that seize rent-generating opportunities and acquire host-country-specific knowledge (Luo 2003), but subsidiaries are also able to negotiate strategic choice to a certain extent .…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Headquarters’ Attention and Its Effect on Subsidiary Performance

2010

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0Drawing on a sample of 283 subsidiaries in three countries, we investigate how headquarters' attention affects subsidiary performance. 0 scholars have recently argued that top management's attention is the most critical, scarce and sought-after resource in organizations (haas and hansen 2001; Bouquet and Birkinshaw 2008). however, the question how headquarters' attention affects subsidiary companies remains largely unexplored. 0Our study shows that subsidiaries which have a high level of strategic choice and receive attention from headquarters perform better than their peers. More specifically, we find that the interactions of subsidiaries' autonomy, inter-unit power and initiatives with attention increase subsidiary performance.

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“…Other studies have highlighted subsidiary local 'embeddedness' as an important factor in its capability development including its innovation (or 'knowledge building') and knowledge transfer activities [4,5,29].…”

Section: A Conceptual Perspective On the Relationship Between Mne Heamentioning

confidence: 99%