Subsidiary role development: The effect of micro-political headquarters–subsidiary negotiations on the product, market and value-added scope of foreign-owned subsidiaries

Dörrenbächer, Christoph; Gammelgaard, Jens

doi:10.1016/j.intman.2006.06.001

Cited by 129 publications

(127 citation statements)

References 31 publications

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“…It is widely assumed that two of the key internal factors associated with subsidiary role development are subsidiary initiative-taking (Birkinshaw, 1997;Birkinshaw & Hood, 1998;Dörrenbächer & Gammelgaard, 2006), on the one hand, and parent company determinism in the allocation of mandates (Birkinshaw & Hood, 1998;Hood & Taggart, 1999), on the other. However, in terms of R&D roles, the mechanisms driving the evolution are not so straightforward: one argument advocates that subsidiaries with acknowledged advanced R&D mandates may enjoy higher levels of autonomy and, hence, lawfully display greater initiative (Birkinshaw & Hood, 1998;Birkinshaw et al, 2005;Delany, 2000).…”

Section: Internal Mnc Networkmentioning

confidence: 99%

“…Arguably, they are involved in a 'perpetual bargaining process' (Andersson et al, 2007). Subsidiary power in this relationship, as far as its R&D evolution is concerned, can be associated with the possession of knowledge-related capabilities and a favourable host country environment (Dörrenbächer & Gammelgaard, 2006). Subsidiaries strengthen their competitive position within the corporate group by accumulating over time the competencies needed for innovation (Figueiredo, 2011).…”

Section: Subsidiary Double-network Embeddedness: Internal and Externamentioning

confidence: 99%

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Knowledge sharing and subsidiary R&D mandate development: A matter of dual embeddedness

Achcaoucaou

Miravitlles

Darder

2014

International Business Review

123

126

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Sharing knowledge across borders has proven to be especially relevant to multinational corporations (MNCs). Foreign subsidiaries have become active players in these knowledge flows. However, the network effects of interacting with multiple agents on the evolution of the R&D role played by subsidiaries are still undeveloped. The present study focuses on changes in subsidiary capabilities and on the dynamic mechanisms by which their R&D role might evolve, especially, as a consequence of their interaction with a variety of knowledge networks. We examine this issue by conducting four longitudinal case studies of subsidiaries operating in Spain. Using an inductive approach to theory building, we develop a general theoretical framework considering the subsidiary's embeddedness in the knowledge networks within the MNC (internal) and within the host country (external). We find that evolving towards a competence-creating mandate is characterised by the simultaneous growth of embeddedness in both internal and external networks; otherwise, a subsidiary may gravitate away from upgrading its R&D role. Thus, the contribution of this paper is to present a dynamic model that sheds light on how internal and external knowledge embeddedness interact in generating outcomes for subsidiary R&D roles.

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Section: Internal Mnc Networkmentioning

confidence: 99%

Section: Subsidiary Double-network Embeddedness: Internal and Externamentioning

confidence: 99%

Knowledge sharing and subsidiary R&D mandate development: A matter of dual embeddedness

Achcaoucaou

Miravitlles

Darder

2014

International Business Review

123

126

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“…The new status implies changes both in the subsidiary's autonomy and in parent companies' control and coordination methods, or at least it motivates the parent company to adopt a less authoritarian and less formalistic coordination style (Dörrenbächer and Gammelgaard, 2006;Ambos et al, 2011). Since upgrading is based on demonstrated subsidiary capabilities, it will allow more autonomy for some of the functional officers of the subsidiary, at least with respect to selected local issues (Martinez and Jarillo, 1989;Cantwell and Mudambi, 2005;Bouquet and Birkinshaw, 2008;and in a CEE context: Jindra et al, 2009;Majcen et al, 2009 (Szalavetz, 2010;2012;2013a, 2013b, we received a number of similar remarks, suggesting a lack of a direct causal relation between upgrading and changes in subsidiary autonomy.…”

Section: Introductionmentioning

confidence: 99%

Upgrading and Subsidiary Autonomy : Experience of Hungarian Manufacturing Companies

Szalavetz

2015

JJCE

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Abstract： This paper examines the patterns of subsidiary autonomy at the organizational periphery: at multinational companies' (MNCs) manufacturing subsidiaries in Hungary. It investigates the impact of upgrading on subsidiary autonomy.Our case study-based investigation (27 in-depth interviews at 14 manufacturing subsidiaries) integrates three previously isolated lines of research: 1) subsidiary upgrading, 2) subsidiary autonomy and 3) headquarters' role in MNCs.We find no direct relation between upgrading and subsidiary autonomy, since external factors such as changes in the business environment and/or in parent companies' strategic decisions often counteract upgrading-induced effects.It is shown that the subsidiaries' moving up the value chain is paralleled by similar upward shifts in parent companies' activity specialization. The reconfiguration of parent companies' activities, together with the expansion of the size and scope of the multinational company will necessarily have an impact on the headquarters' coordination and governance practices: over time they tend to become more formal. ［Key words：functional upgrading,subsidiary autonomy,headquarters-subsidiary relations,specialization in global value chains,Hungary］ [Special Article]

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“…Other contributions focused on specific types of negotiations that can have strategic importance for an organization, such as exchanges between headquarters and subsidiaries (Dörrenbächer and Gammelgaard, 2006) or negotiations with governments (Weiss, 1990).…”

Section: Literature Review: the Gap At The Interplay Of Strategy And mentioning

confidence: 99%

“…within the management practice (Dörrenbächer and Gammelgaard, 2006;Lippman and Rumelt, 2003;Luo and Shenkar, 2002). Negotiation practices contribute to strategy formulation and implementation.…”

Section: The Circularity Between Strategy and Negotiationmentioning

confidence: 99%

Building theory on the negotiation capability of the firm: evidence from Ryanair

Caputo

Borbely

Dabić

2019

JKM

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Purpose: In an attempt to build upon existing theory, this paper investigates the potentially reciprocal relationship between negotiation and strategy, and strives to contribute towards a better understanding of the ways in which organizations negotiate.Design/methodology/approach: Built upon the integration of two different bodies of literature, negotiation and strategy, and on the analysis of the case of Ryanair, this paper argues for an integrated approach to negotiation and organizational capabilities. Findings:The case study allows for a clearer understanding of how negotiation capability can play a significant role in supporting the creation and sustainment of competitive advantage, even under unfavorable industry settings.Originality/value: The paper contributes to theoretical development by offering new and insightful explanations of firms' behavior, moving beyond the classic interpretation of industry dynamics, such as bargaining power. This study has implications for both practice and research, as it offers a better and more holistic understanding of the strategy making process and the foundations of its success.

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Subsidiary role development: The effect of micro-political headquarters–subsidiary negotiations on the product, market and value-added scope of foreign-owned subsidiaries

Cited by 129 publications

References 31 publications

Knowledge sharing and subsidiary R&D mandate development: A matter of dual embeddedness

Knowledge sharing and subsidiary R&D mandate development: A matter of dual embeddedness

Upgrading and Subsidiary Autonomy : Experience of Hungarian Manufacturing Companies

Building theory on the negotiation capability of the firm: evidence from Ryanair

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