The development of critical capabilities in foreign subsidiaries: disentangling the role of the subsidiary’s business network

Schmid, Stefan; Schurig, Andreas

doi:10.1016/j.ibusrev.2003.05.001

Cited by 142 publications

(97 citation statements)

References 68 publications

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“…Subsidiary relational embeddedness to external actors has been shown to drive knowledge creation and performance (Hakanson & Nobel, 2001;Schmid & Schurig, 2003;Almeida & Phene, 2004;Holm, Holmström & Sharma, 2005;Boehe, 2007;Mu, Gnyawali & Hatfield, 2007;Luo, 2001;Andersson et al, 2002). This is based on the reasoning that knowledge and capability development is facilitated through strong, trustful ties of mutual commitment that are able to transfer more fine-grained knowledge and information (Uzzi, 1996;Gulati, 1998).…”

Section: External Network Embeddednessmentioning

confidence: 99%

The MNC as an externally embedded organization: An investigation of embeddedness overlap in local subsidiary networks

Nell

Ambos

Schlegelmilch

2011

Journal of World Business

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Section: External Network Embeddednessmentioning

confidence: 99%

The MNC as an externally embedded organization: An investigation of embeddedness overlap in local subsidiary networks

Nell

Ambos

Schlegelmilch

2011

Journal of World Business

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“…With a few exceptions (Perez and Sanchez, 2002;Tavares and Young, 2006;Williams, 2005), direct investigation of the role of strategic decision-making autonomy for the development of domestic sourcing has not been a preoccupation of the literature. However, positive relationships have been found between factors that are connected to strategic decision-making autonomy and the capacity to exploit locally available assets (Andersson and Forsgren, 2000;Birkinshaw and Hood, 1998;Pearce, 1999;Schmid and Schurig, 2003). This literature suggests that strategic decision-making autonomy leads to lower costs of conducting interorganisational transactions because of the shorter chain of command, the building up of trust between network partners, and the ability to innovate in relationships with domestic suppliers (see figure 1).…”

Section: Strategic Decision-making Autonomymentioning

confidence: 99%

Domestic Sourcing by Foreign-Owned Subsidiaries

Williams

McDonald

Tüselmann

et al. 2008

Environ Plann C Gov Policy

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This paper investigates the development of domestic sourcing by foreign-owned subsidiaries (FOS) in the UK. The regional development and international-business literatures are used to develop a conceptual framework on the links between autonomy, the use of networks, and domestic sourcing. Data from a survey of German, French, and US FOS in the UK is used to test the model. The results indicate that increased use of networks and increased operational decision-making autonomy are associated with increased domestic sourcing, but that only a minority of FOS are increasing their use of domestic sourcing. The growing importance of global sourcing is considered as a possible explanation for the low proportion of FOS that are increasing their use of domestic sourcing. The implications for regional-development policy of the findings are also assessed.

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“…The network relationships that the subsidiary has with business and non-business actors within and outside the multinational network has been linked to increased performance, knowledge flows and regional development among others (Bartlett & Ghoshal, 1989;Rugman & Verbeke, 2001;Schmid & Schurig, 2003;Forsgren et al, 2005;Ambos & Ambos, 2009). The concepts of decision making autonomy has been emphasised in particular after the shift away in the literature from more headquarter centred perspectives towards the focus on subsidiaries and their individual contribution (Edwards et al, 2002;Verbeke & Yuan, 2005).…”

mentioning

confidence: 99%

The Effects of Institutional Distance on Foreign-Owned Subsidiary Development: The Case of the Northwest of England

Dahms¹

2014

IJBM

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The purpose of this paper is to analyse the effects of institutional distance on foreign-owned subsidiary development. In particular, a distinction between direct and indirect effects of formal and informal institutional distance is proposed and empirically tested. Based on a bespoke census database of all known foreign-owned subsidiaries in the Northwest of England a postal survey has been conducted. The results indicate that informal institutional distance does have a pronounced negative effect on the level of intra-and inter-organisational relationships and decision-making autonomy in foreign-owned subsidiaries. The direct effect of formal institutional distance seems to be less relevant, however, it is becoming significant when the interaction between formal and informal institutional distance is considered. The specific contribution of this study lies in the systematic and comprehensive investigation of the formal and informal institutional distance between home and host country and their effects on subsidiary development. It is one of the first studies to provide a theoretically sound investigation, based on new institutional economics and internalisation theory, of the interaction between formal and informal institutional distance in the context of foreign-owned subsidiaries.

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The development of critical capabilities in foreign subsidiaries: disentangling the role of the subsidiary’s business network

Cited by 142 publications

References 68 publications

The MNC as an externally embedded organization: An investigation of embeddedness overlap in local subsidiary networks

The MNC as an externally embedded organization: An investigation of embeddedness overlap in local subsidiary networks

Domestic Sourcing by Foreign-Owned Subsidiaries

The Effects of Institutional Distance on Foreign-Owned Subsidiary Development: The Case of the Northwest of England

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