The importance of competence-based instruments for steering foreign manufacturing subsidiaries of multinational automotive companies in the new growth markets

Heterogeneity of the steering of foreign subsidiaries in multinational automotive companies

“…also Figure 1 and Annex): 'regulatory structures' (e.g., mentoring or compliance management), 'allocation of tangible resources' (e.g., creation of good communication through personnel transfers) and 'transfer and creation of knowledge' (e.g., establishing of centres of excellence, cf. e.g., Gupta and Govandarajan, 2000;Ambos and Mahnke, 2010;Egelhoff, 2010;Proff and Proff, 2017). They serve here to operationalise the heterogeneity of steering per company via six subsidiaries for each company.…”

“…It is therefore important for them to recognise important restrictions and tap opportunities. Source: Own compilation based on e.g., Proff and Proff (2017), D'Agostino and Santangelo (2012), Laudien and Freiling (2011), Mudambi (2011), Cantwell and Mudambi (2005), Ambos and Birkinshaw (2010), Egelhoff (2010), Adenfelt and Lagerström (2008), Mudambi and Navarra (2004), Gupta and Govindarajan (2000), Casson (1999) and Stein (1997) There is no comprehensive explanation of the management of subsidiaries or international coordination; hence, all three explanations are drawn upon. This is possible, at least in an environment having only incremental, seldom and weak changes like that of many traditional sectors such as the capital-intensive industries considered (cf.…”