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How subsidiaries influence innovation in the MNE value chain
Jönköping University, Jönköping International Business School, JIBS, Business Administration. Jönköping University, Jönköping International Business School, JIBS, Centre for Family Entrepreneurship and Ownership (CeFEO). School of Business, Dundee University, United Kingdom.ORCID iD: 0000-0002-0900-4054
School of Business, Society and Engineering, Mälardalen University, Sweden.
School of Business, Society and Engineering Mälardalen University, Sweden.
2018 (English)In: Transnational Corporations Journal, ISSN 1014-9562, E-ISSN 2076-099X, Vol. 25, no 1, p. 73-100Article in journal (Refereed) Published
Abstract [en]

As multinational enterprises increasingly disaggregate their value chains and assign functional responsibilities to foreign subsidiaries, they are increasingly focused on augmenting spatially distant activities and resources. At the same time, despite subsidiary managers operating at the “middle” of the organization and having awareness of operational and strategic contexts, they have received significant criticism for hindering the successful coordination and integration of value chain activities. This appears counterintuitive as, on the one hand, MNEs are increasingly disaggregating their value chains and, on the other, subsidiary managers act as frontline managers, at the intersection of their local context and the MNE. We examine the resource stocks of six subsidiaries and the activities of subsidiary managers locally and across global value chains. The results indicate that integration responsibilities are decentralized, as properties of subsidiary mandates, and that the subsidiary managers’ connectivity activities significantly affect the strategic influence that they subsidiary can exercise locally and globally. The results also contain important information for policymakers.

Place, publisher, year, edition, pages
United Nations Conference on Trade and Development , 2018. Vol. 25, no 1, p. 73-100
Keywords [en]
R&D mandate integration; subsidiary manager activities; connectivity; strategic influence
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hj:diva-48068DOI: 10.18356/d3e73f33-enScopus ID: 2-s2.0-85048545374OAI: oai:DiVA.org:hj-48068DiVA, id: diva2:1421652
Available from: 2020-04-04 Created: 2020-04-04 Last updated: 2020-12-08Bibliographically approved

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Gillmore, Edward

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