Subsidiary political embeddedness: mechanisms for leveraging local competences

Abstract

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.

Citation

Botella-Andreu, A., Villar, C., Pla-Barber, J. and Andersson, U. (2024), "Subsidiary political embeddedness: mechanisms for leveraging local competences", European Business Review, Vol. 36 No. 4, pp. 468-493. https://doi.org/10.1108/EBR-06-2023-0190