Purpose: This study aims to investigate the drivers of political embeddedness and the possible outcome in terms of autonomy and subsidiary unique competences.
Design/methodology/approach: This study draws on resource dependence theory and applies structural equation modeling on a sample of 193 subsidiaries.
Findings: Political embeddedness is confirmed as a source of potential autonomy and the development of competences and is usually boosted by previous existing networks at the internal and external levels.
Originality/value: The authors investigate and discuss how multinational corporations can leverage political resources in host-country political arenas, extending their understanding of the interplay between political activities and market strategies.