TITLE

Multinational corporations, inter-organizational networks and subsidiary charter removals

AUTHOR(S)
Dörrenbächer, Christoph; Gammelgaard, Jens
PUB. DATE
July 2010
SOURCE
Journal of World Business;Jul2010, Vol. 45 Issue 3, p206
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
Abstract: This paper provides insights into the dynamics of a charter removal at a Hungarian subsidiary of the Siemens telecommunication switching division. By using inter-organizational network theory, we investigate how host-country factor endowments, the resource position of a subsidiary and the density of network exchange relationships within the organizational network influence the removal of a multinational corporate subsidiary''s charter. The dispersion of resources in a multinational corporation drives intra-firm competition, which will typically lead to the removal of a subsidiary''s charter if the subsidiary lacks specialized resources – typically an outcome of host country comparative disadvantages – and simultaneously holds a position on the periphery of the organizational network.
ACCESSION #
51154911

 

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