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How subsidiaries influence innovation in the MNE value chain
Dundee University, United Kingdom.ORCID iD: 0000-0002-0900-4054
Mälardalen University, School of Business, Society and Engineering, Industrial Economics and Organisation.ORCID iD: 0000-0003-4425-9367
Mälardalen University, School of Business, Society and Engineering, Industrial Economics and Organisation.ORCID iD: 0000-0002-7869-0596
2018 (English)In: TRANSNATIONAL CORPORATIONS, ISSN 1014-9562, Vol. 25, no 1, p. 73-100Article in journal (Refereed) Published
Abstract [en]

As multinational enterprises increasingly disaggregate their value chains and assign functional responsibilities to foreign subsidiaries, they are increasingly focused on augmenting spatially distant activities and resources. At the same time, despite subsidiary managers operating at the “middle” of the organization and having awareness of operational and strategic contexts, they have received significant criticism for hindering the successful coordination and integration of value chain activities. This appears counterintuitive as, on the one hand, MNEs are increasingly disaggregating their value chains and, on the other, subsidiary managers act as frontline managers, at the intersection of their local context and the MNE. We examine the resource stocks of six subsidiaries and the activities of subsidiary managers locally and across global value chains. The results indicate that integration responsibilities are decentralized, as properties of subsidiary mandates, and that the subsidiary managers' connectivity activities significantly affect the strategic influence that they subsidiary can exercise locally and globally. The results also contain important information for policymakers.

Place, publisher, year, edition, pages
2018. Vol. 25, no 1, p. 73-100
Keywords [en]
R&D mandate integration; subsidiary manager activities; connectivity; strategic influence.
National Category
Business Administration
Research subject
Industrial Economics and Organisations
Identifiers
URN: urn:nbn:se:mdh:diva-41250DOI: 10.18356/d998ea62-enScopus ID: 2-s2.0-85048545374OAI: oai:DiVA.org:mdh-41250DiVA, id: diva2:1259746
Available from: 2018-10-30 Created: 2018-10-30 Last updated: 2020-11-12Bibliographically approved

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Andersson, UlfMemar, Noushan

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  • nn-NO
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