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How subsidiaries gain power in multinational corporations
Fox School of Business, USA.
Copenhagen Business School, Denmark.
Mälardalen University, School of Business, Society and Engineering, Industrial Economics and Organisation.ORCID iD: 0000-0003-4425-9367
2014 (English)In: Journal of world business (Print), ISSN 1090-9516, E-ISSN 1878-5573, Vol. 49, no 1, 101-113 p.Article in journal (Refereed) Published
Abstract [en]

This study focuses on how power is gained within large organizations, such as the intra-organizational network of MNCs. Drawing on resource dependence literature, this study develops and empirically tests a set of hypotheses aimed at explaining the multifaceted nature of power and decision making in multinational firms. Data collected from 2107 foreign-owned subsidiaries in seven European countries is used to test the hypotheses. The results indicate that mutual dependence and dependence imbalance provide strong explanations for subsidiary power. Furthermore, subsidiary power over strategic decisions in the MNC is gained through functional power, notably the possession of technological, rather than business-related, power or by the possession of both as they reinforce each other in strengthening the subsidiary's strategic power in the MNC network. © 2013 Elsevier Inc. All rights reserved.

Place, publisher, year, edition, pages
2014. Vol. 49, no 1, 101-113 p.
Keyword [en]
Resource dependence theory, Subsidiary functional- and strategic power, Subsidiary resources
National Category
Social Sciences Economics and Business
Identifiers
URN: urn:nbn:se:mdh:diva-18326DOI: 10.1016/j.jwb.2013.02.001ISI: 000329275700010Scopus ID: 2-s2.0-84888070439OAI: oai:DiVA.org:mdh-18326DiVA: diva2:609011
Available from: 2013-03-04 Created: 2013-03-04 Last updated: 2016-03-10Bibliographically approved

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