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What mandate gain can do to a subsidiary?
Mälardalen University, School of Business, Society and Engineering, Industrial Economics and Organisation. (Marknadsföring och strategi)ORCID iD: 0000-0002-7869-0596
2018 (English)Conference paper, Oral presentation with published abstract (Refereed)
Abstract [en]

Globalization of the multinational enterprises complicated the task of subsidiary’s managers. Since, all of the subsidiary managers activities influence the performance of the unit, in this study by reviewing the MNE middle management framework and acknowledging that all of the activities are important for the survival of the unit we conceptually investigate “What factors cause subsidiary managers to prioritize one activity over others when subsidiary gains a mandate? And does it matter?” To answer these questions, we elaborate on the mandate gain, its prime mover and the spectrum of change in the subsidiary portfolio. We propose a framework of activities by which we distinguish the direction and the amount of the subsidiary managers’ activities post-mandate gain. We finally suggest that when a subsidiary is competing in a hyper-competitive sector where time matters the most, it is best for the MNE to increase the autonomy of subsidiaries in that sector, so the managers can develop subsidiaries portfolio by taking various initiatives in the places they perceive best. Whereas, when MNE has a long-term plan to be located in uncompetitive industry, it is best for the MNE to insert control and coordinate the subsidiaries' portfolio.

Place, publisher, year, edition, pages
2018.
Keywords [en]
Subsidiary strategy, MNE middle managers, Change in subsidiary management, Subsidiary innovation, R&D mandate gain
National Category
Business Administration
Identifiers
URN: urn:nbn:se:mdh:diva-50029OAI: oai:DiVA.org:mdh-50029DiVA, id: diva2:1466845
Conference
45th Academy of International Business(AIB) - UK & Ireland Chapter - Annual Conference
Available from: 2020-09-14 Created: 2020-09-14 Last updated: 2020-11-12Bibliographically approved

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Memar, Noushan

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  • nn-NO
  • nn-NB
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Output format
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  • asciidoc
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