TITLE

The MNC as an externally embedded organization: An investigation of embeddedness overlap in local subsidiary networks

AUTHOR(S)
Nell, Phillip C.; Ambos, Bj�rn; Schlegelmilch, Bodo B.
PUB. DATE
October 2011
SOURCE
Journal of World Business;Oct2011, Vol. 46 Issue 4, p497
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
Abstract: MNCs have been conceptualized as differentiated networks that, in turn, are embedded in external networks. Previous research has predominantly focused on the embeddedness of established subsidiaries into their local environment, omitting to shed light on the phenomenon of headquarters linkages to the local context which creates embeddedness overlap. We develop a model of why MNCs develop overlapping linkages to local subsidiary networks even if the subsidiaries have grown out of the initial start-up phase. Using detailed information on 168 European subsidiaries, we find that MNCs build and maintain more overlapping network ties when subsidiaries are high performers, hold important resources, operate in turbulent environments, and are closely connected to multinational actors as opposed to purely domestic firms.
ACCESSION #
65345365

 

Related Articles

  • US subsidiary control in Malaysia and Singapore. Richards, Malika; Hu, Michael Y. // Business Horizons;Nov2003, Vol. 46 Issue 6, p71 

    Does the kind of control headquarters have over their foreign subsidiaries make a difference? This study examines both formal and informal control of HQ to determine their impact on subsidiary performance. Informal control is operationalized as vertical integrators between HQ and subsidiaries....

  • THE ADAPTATION VS. STANDARDIZATION DILEMMA: THE CASE OF AN AMERICAN COMPANY IN BRAZIL. Rocha, Thelma Valéria; Silva, Susana Costa e // Internext: Revista Electrônica de Negócios Internacionais da E;2011, Vol. 6 Issue 1, p63 

    This study analyzes the adaptation versus standardization dilemma in International Marketing in subsidiaries of multinationals corporations. It highlights the importance of GMS - global marketing strategies - in the ability to innovate in subsidiaries in emerging economies, as Brazil. The...

  • Aligning the Interests of Subsidiaries and Headquarters in Multinational Corporations: Empirical Evidence. Costello, Ayse Olcay; Costello, Thomas G. // Multinational Business Review (St. Louis University);Winter2009, Vol. 17 Issue 4, p163 

    To better understand the relationship between the headquarters and subsidiaries of multinational corporations, we introduce and test a theoretical framework that builds on and extends the positive agency theoretic corporate governance literature. Results indicate that there are three types of...

  • Developing Strategy from the Middle: Subsidiary Strategy and the Role of the Subsidiary General Manager. O'BRIEN, DÓNAL; SCOTT, PAMELA SHARKEY; GIBBONS, PAT // Irish Journal of Management;2013, Vol. 32 Issue 2, p109 

    The multinational subsidiary is a unique context for studying management processes relating to strategy but, to date, the literature in this area lacks a coherent approach. It is recognised that subsidiaries evolve over time and, through their own actions and initiatives, have the potential to...

  • A CURVILINEAR RELATIONSHIP BETWEEN CONTROL AND STRATEGY: SHARING OF CONTROL IN A MULTINATIONAL NETWORK. Mukherji, Ananda; Mukherji, Jyotsna; Hurtado, Pedro // Advances in Competitiveness Research;2008, Vol. 16 Issue 1, p74 

    There has been a great deal of interest by researchers in understanding the issue of control of subsidiaries in a multinational network. The debate has been between using high control or centralization versus low control or decentralization when examining the relationship between head office and...

  • Headquarters–subsidiary relationships in MNCs: Fifty years of evolving research. Kostova, Tatiana; Marano, Valentina; Tallman, Stephen // Journal of World Business;Jan2016, Vol. 51 Issue 1, p176 

    We review the contributions to research on headquarters–subsidiary (HQS) relationships published in the Journal of World Business (known as the Columbia Journal of World Business until 1997) from the late 1960s to the present day. Based on 81 articles on the topic, we identify trends and...

  • Why Do Regional Headquarters Live and Die? Kähäri, Perttu // AIB Insights;2015, Vol. 15 Issue 3, p9 

    The article discusses the challenges faced by multinational companies' headquarters. Topics discussed include pressure to manage the changing organizations in globalizing world and a need of local responsiveness, survival of regional headquarters (RHQ) only if value is added to its parent and...

  • Power in the multinational corporation in industry equilibrium. Marin, Dalia; Verdier, Thierry // Economic Theory;Mar2009, Vol. 38 Issue 3, p437 

    Recent theories of the multinational corporation introduce the property rights model of the firm and examine whether to integrate or outsource firm activities locally or to a foreign country. This paper focuses instead on the internal organization of the multinational corporation by examining...

  • Global integration and the performance of multinationals' subsidiaries in emerging markets. Chen, Roger (Rongxin); Cannice, Mark V. // Ivey Business Journal;Jan/Feb2006, Vol. 70 Issue 3, p1 

    In the global integration model, management power in the multi-national corporation is primarily centralized at the MNC headquarters (HQ). MNC subsidiaries have little flexibility or autonomy. In the localization model, on the other hand, the MNC HQs do not standardize the business activities of...

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics