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Characteristics of Low-Autonomy Foreign Subsidiaries: Value Chains, Staffing, and Intra-Organizational Relationships
Copenhagen Business School.
Bradford University School of Management.
Jönköping University, Jönköping International Business School, JIBS, Economics, Finance and Statistics.
Manchester Metropolitan University.
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2012 (English)In: Journal of International Business and Economics, ISSN 1544-8037, Vol. 13, no 1, 65-95 p.Article in journal (Refereed) Published
Abstract [en]

This paper examines several characteristics of foreign subsidiaries with low autonomy. Data derived from a survey of 381 MNC subsidiaries located in Denmark, Germany and the UK demonstrate that low-autonomy subsidiaries are highly embedded in their respective MNC networks and that they establish a high number of intra-organizational relationships. Furthermore, such subsidiaries are typically managed by nationals of the MNC’s headquarters home country. Despite the fact that such subsidiaries have low autonomy, they employ a high proportion of professional staff members. We find a negative relationship between lower autonomy and the production activities carried out by the subsidiary. In fact, low-autonomy subsidiaries appear to be specialized in that they focus on a few value-chain activities and they typically serve as marketing outlets.

Place, publisher, year, edition, pages
2012. Vol. 13, no 1, 65-95 p.
Keyword [en]
subsidiaries, autonomy, staffing, networks
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hj:diva-21150Local ID: IHHEFSISOAI: oai:DiVA.org:hj-21150DiVA: diva2:620965
Available from: 2013-05-13 Created: 2013-05-13 Last updated: 2015-11-17Bibliographically approved

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