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Subsidiary Role and Skilled Labour Effects in Small Developed Countries
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2009 (English)In: Management International Review, ISSN 0025-181X, Vol. 49, p. 27-42Article in journal (Refereed) Published
Abstract [en]

This paper considers the proportion of skilled labour employed by subsidiaries in small countries in the context of the strategic role of subsidiaries. Strategic role is connected to autonomy and intra-organisational relationships and the mandates given to the subsidiary. In the paper, we draw on the literature on the strategic development of multinational corporations, and insights from inward foreign direct investments in small developed countries. This ispresented in a unifying framework in order to predict diverse categorizations of the impact of subsidiary role on the proportion of their employment of skilled labour. The paper derives two propositions that postulate interactions between three roles containing different levels of autonomy and intra-organisational relationships in small developed countries that lead to different proportions of skilled labour in subsidiaries. We predict the highest proportion of skilled labour by subsidiaries located in small developed countries in the case of world mandates when autonomous-based operations are emphasized. When there is an emphasis on intra-organizational relationships, measured by product flowsand integrated international value-chain configurations, we predict the proportion of skilled labour to be highest in the cases of specialized contributors. We propose the proportion of skilled labour to be lowest in the case of local implementers.

Place, publisher, year, edition, pages
Gabler-Verlag , 2009. Vol. 49, p. 27-42
Keywords [en]
Subsidiary Roles, Small Developed Countries, Employment, Skilled Labour, Autonomy, Intra-Organisational Relationships
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hj:diva-7907OAI: oai:DiVA.org:hj-7907DiVA, id: diva2:173891
Available from: 2009-09-01 Created: 2009-02-18 Last updated: 2017-12-13Bibliographically approved

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Stephan, Andreas

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CiteExportLink to record
Permanent link

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Citation style
  • apa
  • harvard1
  • 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
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