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The contribution of local environments to competence creation in multinational enterprises
Mälardalen University, School of Business, Society and Engineering, Industrial Economics and Organisation. (IEO)ORCID iD: 0000-0003-4425-9367
Uppsala University.
Uppsala University.
2014 (English)In: Long range planning, ISSN 0024-6301, E-ISSN 1873-1872, Vol. 47, no 1-2, 87-99 p.Article in journal (Refereed) Published
Abstract [en]

This paper examines the competence development of subsidiaries in multinational enterprises. We analyze how local subsidiary environments affect the development of technological and business competencies among other units in the multinational enterprise. We test our predictions using data from 2,107 foreign-owned subsidiaries located in seven European countries, by means of structural equation modeling - namely, LISREL. By bringing the local environment to the fore, we contribute to the literature on the emergence and determinants of firm-specific advantages. We link local subsidiary environments to the development of the competencies of other units in the multinational enterprise. The role of the multinational enterprise is characterized as integrative, as it may bridge local competencies and environments that are conducive to competence creation, and as it facilitates the use of resources residing locally throughout the organization. Thus, we contribute to an enhanced understanding of location as a determinant of the creation of units of competence and centers of excellence within multinational enterprises. In other words, we demonstrate that country-specific advantages are beneficial for competence creation in units other than the local subsidiary. We thereby link country-specific advantages to the creation of firm-specific advantages in the multinational enterprise - i.e., the multinational enterprise can build and augment firm-specific advantages by making the most of country-specific advantages.

Place, publisher, year, edition, pages
2014. Vol. 47, no 1-2, 87-99 p.
National Category
Economics and Business Business Administration
Research subject
Industrial Economics and Organisations
Identifiers
URN: urn:nbn:se:mdh:diva-23718DOI: 10.1016/j.lrp.2013.10.002ISI: 000335537800008Scopus ID: 2-s2.0-84896493431OAI: oai:DiVA.org:mdh-23718DiVA: diva2:680548
Available from: 2013-12-18 Created: 2013-12-18 Last updated: 2015-02-05Bibliographically approved

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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf