Ana Botella-Andreu, Cristina Villar, José Pla-Barber and Ulf Andersson
This study aims to investigate the drivers of political embeddedness and the possible outcome in terms of autonomy and subsidiary unique 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.
Details
Keywords
Niall O'Riordan, Paul Ryan and Ulf Andersson
The authors’ contention in this paper is that the expression of subsidiary strategy in IB literature has become fragmented and incomplete. Therefore, this study aims to propose a…
Abstract
Purpose
The authors’ contention in this paper is that the expression of subsidiary strategy in IB literature has become fragmented and incomplete. Therefore, this study aims to propose a rethink on how IB scholarship approaches the important issue of subsidiary strategy by holistically examining the discrete and integrated set of activities, choices and decisions that constitute the subsidiary strategy process for, in this context, assuming a competence-creating role within the multinational enterprise (MNE).
Design/methodology/approach
A conceptual model is designed to illustrate the holistic process of subsidiary strategy from assigned to assumed role and how a subsidiary can navigate a pathway to elevated performance and survival.
Findings
The paper identifies the key integrated elements that constitute a holistic strategic process that can enhance a subsidiary’s standing within the MNE and maximise its survival prospects.
Research limitations/implications
Particular focus is placed on subsidiaries that strategise to advance their internal corporate role to competence creator via upgraded knowledge capabilities.
Originality/value
This paper offers a roadmap for IB scholars to contribute to a future discourse around the subsidiary strategy process for assuming a competence-creating role.
Details
Keywords
Monica Riviere, Ulf Andersson and A. Erin Bass
This paper aims to explore the relationship between strategic internationalization decisions and dynamic capabilities deployment for the internationally growing firm (IGF)…
Abstract
Purpose
This paper aims to explore the relationship between strategic internationalization decisions and dynamic capabilities deployment for the internationally growing firm (IGF). Dynamic capabilities refer to a firm’s ability to adapt proactively to a changing business environment, emphasizing the importance of “doing the right things” rather than just “doing things right.
Design/methodology/approach
Literature-based, this paper proposes a model that links internationalization decisions and dynamic capabilities deployment, offering valuable insights for both research and practical application.
Findings
The study highlights that the IGF – focused on expansion and growth abroad – faces unique complexities that demand “doing the right things” in terms of strategic internationalization decisions. Three critical organizational capabilities – knowledge transfer, knowledge recombination and learning capabilities – are mechanisms linking strategic internationalization decisions to dynamic capability deployment in the IGF. These organizational capabilities enable the IGF to act entrepreneurially and deploy dynamic capabilities across borders.
Research limitations/implications
The model provides a practical framework illustrating the interconnectedness of strategic internationalization decisions and their combined effects on the ability of IGF to deploy dynamic capabilities to adapt to a changing global environment.
Originality/value
This research addresses a gap in the literature, challenging the conventional assumption that dynamic capabilities precede firms’ decisions to internationalize and that these dynamic capabilities can only be enhanced abroad.
Details
Keywords
Phillip C. Nell, Ulf Andersson and Bodo B. Schlegelmilch
Purpose – The purpose of this chapter is to develop a more fine-grained model of the relationship between multinational corporation (MNC) external embeddedness and subsidiary…
Abstract
Purpose – The purpose of this chapter is to develop a more fine-grained model of the relationship between multinational corporation (MNC) external embeddedness and subsidiary contribution to firm-level competitive advantage.
Methodology/approach – We briefly review previous international management literature and show that the conception of MNC embeddedness in external networks is often simplistic. We develop the concept of the HQ–subsidiary dyad being externally embedded and derive propositions on how this more holistic concept of MNC embeddedness influences subsidiary contribution.
Findings – We argue that subsidiary contribution depends not only on the relational embeddedness dimension of the subsidiary but that there is a complex interplay between several embeddedness dimensions on multiple levels. We suggest that the much emphasized effect of subsidiary relational embeddedness might be contingent on the HQ's own relationships, and the structure of the overall network. We also develop propositions which show that subsidiary relational embeddedness mediates the relationship between overall network structure and subsidiary contribution.
Research limitations – For the sake of theoretical stringency, we keep other influencing factors such as MNC strategy and specific subsidiary mandates as constant.
Originality/value of the chapter – Subsidiaries are an important source of firm-level competitive advantage. Subsidiary resources have also been shown to develop to a large extent in relationships with external actors. Despite this importance, we argue that our understanding of how the MNC is embedded in external networks and how this in turn influences subsidiary contribution is limited. This chapter attempts to make a first step into filling this gap.
This is the fourth volume in the book series Progress in International Business Research with selected papers from the annual conferences of the European International Business…
Abstract
This is the fourth volume in the book series Progress in International Business Research with selected papers from the annual conferences of the European International Business Academy (EIBA). It is with this title that the series was launched by the co-editors Gabriel R. G. Benito and Henrich Greve (BI Norwegian School of Management), based on papers presented during EIBA's annual conference in December 2005 in Oslo. In their preface to the first volume, the previous series editors Torben Pedersen and Ulf Andersson at that time wrote: ‘The aim of the serial is to have an impact on the development of the field of international business by publishing interesting, high quality papers and research ideas that for different reasons might not reach the usual publication outlets.’
Ulf Andersson, Suma Athreye and Georgios Batsakis
We argue that a foreign-based R&D subsidiary of a multinational enterprise (MNE) can potentially source knowledge from three diverse knowledge networks, namely (i) external…
Abstract
We argue that a foreign-based R&D subsidiary of a multinational enterprise (MNE) can potentially source knowledge from three diverse knowledge networks, namely (i) external knowledge network of the home country, (ii) external knowledge network of the host country, and (iii) internal (MNE) knowledge network. Drawing on the relative costs and benefits associated with the process of synergistic knowledge, this study examines whether a substitutive or a complementary relationship exists when two of the aforementioned networks collaborate in order to generate new knowledge at the subsidiary level. Our study’s sample is based on a survey questionnaire addressed to foreign-based R&D subsidiaries of Fortune 500 companies. We assess the existence of complementarity/substitutability using the “production function approach.” Our results indicate that a complementary relationship exists between external knowledge network of the host and the home country, as well as between external knowledge network of the host country and internal knowledge network. On the other hand, external knowledge network of the home country and internal knowledge network form a substitutive relationship. Our study offers a more comprehensive view of the diverse sources/knowledge networks that R&D subsidiaries are sourcing knowledge from when compared to existing research. We also specify and account for the costs/benefits involved in knowledge sourcing and thereby detect possible substitution/complementarity between different sources of knowledge. So far, there has been limited to nonexistent research into the diversity of knowledge networks of R&D subsidiaries and the examination of potential substitutabilities and complementarities. Hence our empirical study contributes to the development of this particular research stream.
Details
Keywords
Torben Juul Andersen and Ulf Andersson
This chapter contends that the international business (IB) and strategic management (SM) fields have many commonalities that should be considered in a turbulent globalized…
Abstract
This chapter contends that the international business (IB) and strategic management (SM) fields have many commonalities that should be considered in a turbulent globalized business context. IB studies refer to the need for local integration and local adaptation whereas empirics in SM pinpoint the complementary effects of central planning and decentralized decision-making. We present and synthesize these rather field specific perspectives and try to synthesize insights from both fields in an adaptive strategy-making model including the effects of autonomous subsidiary initiatives and intended mandates from corporate headquarters. The model considers local subsidiary actions of both operational and strategic nature and we argue that it may be futile to distinguish between these effects as incremental operational responses can cumulate into more substantial changes over time with dimensions of strategic adaptation. The model provides a foundation for further considerations about how to combine central intent and direction with decentralization and autonomous initiatives in the multinational corporation.
Details
Keywords
Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some…
Abstract
Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.