The intersubsidiary competition in an MNE: evidence from the Greater China region

Fong, Cher-Min; Ho, Hua-Lun; Weng, Liang-Chieh; Yang, Kai-Peng

doi:10.1002/cjas.2

Cited by 7 publications

(4 citation statements)

References 59 publications

(71 reference statements)

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“…Anand and Delios, 1997; Johanson and Vahlne, 2009; Rugman and Verbeke, 2004). Thus, relatively easy transferability of production competences among subsidiaries, and the related bundling with external resources, is more likely to lead to intra‐firm competition among subsidiaries to capture more important charters in the MNE than for the other activity sets (Birkinshaw and Lingblad, 2005; Cerrato, 2006; Fong et al., 2007). However, it should be recognized that some sales competences may also be non‐location bound, such as knowledge on how to perform market research, routines allowing efficient distribution, etc.…”

Section: Augmenting the Bartlett And Ghoshal (1986) Typology: Value Cmentioning

confidence: 99%

Re‐conceptualizing Bartlett and Ghoshal's Classification of National Subsidiary Roles in the Multinational Enterprise

Rugman

Verbeke

Yuan

2011

J Management Studies

243

200

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We re-conceptualize the Bartlett and Ghoshal typology of national subsidiary roles in the multinational enterprise (MNE), using a resource bundling perspective. Our view is that national subsidiary roles can vary dramatically across value chain activities. We focus on the distinction among innovation, production, sales, and administrative support activities. For each value chain activity, the subsidiary bundles sets of internal competences with accessible, external location advantages. We also address the effects of regional integration on national subsidiary roles. Such schemes may affect substantially the extent to which location advantages of individual countries can be accessed and bundled with internal competences, thereby typically altering some national subsidiaries' roles in specific value chain activities. However, such substantive changes in specific value chain activities performed by national subsidiaries do not necessarily lead to any move in conventional subsidiary role typologies, such as the Bartlett and Ghoshal one, since these typologies only acknowledge aggregate subsidiary role changes, supposedly valid for the entire value chain.

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Section: Augmenting the Bartlett And Ghoshal (1986) Typology: Value Cmentioning

confidence: 99%

Re‐conceptualizing Bartlett and Ghoshal's Classification of National Subsidiary Roles in the Multinational Enterprise

Rugman

Verbeke

Yuan

2011

J Management Studies

243

200

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“…Previous studies have explored direct relationships between foreign subsidiary strategy and performance (e.g., Chiao et al, 2008;Pehrsson, 2010;Zhao and Luo, 2002;White and Poynter, 1984). Furthermore, external contingencies, including industry type, government policies, market turbulence, consumer needs, technology change, and general rivalry situation, have been studied (Carpano, Chrisman, and Roth, 1994;Fong et al, 2007;Greenley, 1995;Luo, 2001;Peng and Lin, 2007;Rosenzweig and Singh, 1991). However, to my knowledge, no study has captured the important contingency of local competition barriers.…”

Section: Introductionmentioning

confidence: 99%

Competition barriers and strategy moderations: Impact on foreign subsidiary performance

Pehrsson

2012

Global Strategy Journal

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The global firm needs to recognize the crucial role of foreign subsidiary strategy in building global competitive advantage and emphasize corporate control of important strategy elements. In particular, there is a need to examine the role of foreign subsidiary strategy in the firm's efforts to break through local barriers to competition that obstructs the search for global competitive advantage. This study seeks answers to two questions. First, how does the business relatedness between a foreign subsidiary and the parent firm moderate the performance impact of local competition barriers? Second, how does the business strategy of a foreign subsidiary moderate the performance impact of local competition barriers? To test contingency hypotheses, the study used data from 191 subsidiaries in Germany, the United Kingdom, and the United States. The subsidiaries belong to Swedish manufacturing firms. It was found that greater business relatedness and business scope of the subsidiary weaken the negative impact of competition barriers on subsidiary performance, while product differentiation and customer responsiveness differentiation have no moderating effects. The study contributes to theory on control of foreign subsidiaries by extending the knowledge of strategy drivers of foreign subsidiary performance, and the knowledge facilitates the formulation of effective global strategies. Copyright © 2012 Strategic Management Society.

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“…For instance, with many MNEs shifting towards global factory management styles (Buckley, 2011), interdependencies between subsidiaries have increased, and the output of one subsidiary is often the input of another (O'Donnell, 2000). Subsidiaries commonly cooperate in three areas: technological, operational and financial (Fong et al, 2007;Luo, 2005). Technology is closely interlinked to knowledge and human capabilities, while operational and joint financial optimization are closely linked to resource sharing.…”

Section: The Competitioncooperation Interplaymentioning

confidence: 99%

“…Subsidiaries commonly cooperate in three areas: technological, operational and financial (Fong et al ., 2007; Luo, 2005). Technology is closely interlinked to knowledge and human capabilities, while operational and joint financial optimization are closely linked to resource sharing.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

The competition-cooperation interplay for knowledge development: a headquarters-subsidiary perspective

Lagerström

Leite

Pahlberg

et al. 2022

JSMA

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PurposeIn this paper, the authors contribute with insights on competition and cooperation in multinational enterprises with a focus on challenges related to these governance mechanisms in a knowledge development context. The mechanisms have been widely recognized as important for developing knowledge, but their contradicting nature implies considerable complexity when it comes to governance. The complexity is further increased as a result of the headquarters-subsidiary relationships. The aim of this paper is to contribute with theoretical and empirical insights on these aspects by focusing on the research question: How and why does competition and cooperation in an MNE emerge over time?Design/methodology/approachA manufacturing MNE with headquarters (HQ) in Sweden is analyzed on both HQ and subsidiary levels. Interviews with 24 managers in Sweden and India have been performed.FindingsThe study illustrates that competition and cooperation are integral aspects in HQ-subsidiary relationships. The results show that both competition and cooperation depend on environmental, organizational and object-related conditions and that these conditions influence the dynamics of the interplay. The importance of including a subsidiary perspective and the interdependencies in an MNE setting are emphasized.Originality/valueThe authors add to the discussion on the interplay between competition and cooperation as they play an important role for knowledge development in MNEs. The results indicate that they do not take place simultaneously, and therefore, the authors suggest that the dynamic can be better understood by focusing on the interplay and analyze the concepts separately.

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The intersubsidiary competition in an MNE: evidence from the Greater China region

Cited by 7 publications

References 59 publications

Re‐conceptualizing Bartlett and Ghoshal's Classification of National Subsidiary Roles in the Multinational Enterprise

Re‐conceptualizing Bartlett and Ghoshal's Classification of National Subsidiary Roles in the Multinational Enterprise

Competition barriers and strategy moderations: Impact on foreign subsidiary performance

The competition-cooperation interplay for knowledge development: a headquarters-subsidiary perspective

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