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Subsidiary importance in the MNC: what role does internal embeddedness play?
2011 (English)In: International Business Review, ISSN 0969-5931, Vol. 20, no 2, 151-162 p.Article in journal (Refereed) Published
Abstract [en]

At a conceptual level, the eclectic paradigm of international production has evolved in response to the growth of inter-firm alliances and networks. Yet, there is little empirical research on the nature, extent and compatibility of external network relationships formed at the subsidiary level to support this development. We propose that these relationships may be incorporated into the eclectic paradigm by measuring the extent of quasi-internalisation (transfer) of firm-specific advantages and resources between the subsidiary and local customers, suppliers, and alliance partners. Two distinctive features of this paper are observation of quasi-internalisation via subsidiary–network relationships, and exploration of the complementarity of quasi-internalisation with FDI. The study is based on data concerning 516 foreign subsidiaries headquartered in New Zealand. Our results indicate that quasi-internalisation of resources occurs via external network relationships, and complements FDI by allowing the subsidiary to become an organiser of both internal and external resources.

Place, publisher, year, edition, pages
2011. Vol. 20, no 2, 151-162 p.
Keyword [en]
Embeddedness; Internal networks; Multinational enterprise; Subsidiary importance
National Category
Business Administration
URN: urn:nbn:se:uu:diva-132299DOI: 10.1016/j.ibusrev.2010.07.005OAI: oai:DiVA.org:uu-132299DiVA: diva2:357409
Available from: 2010-10-18 Created: 2010-10-18 Last updated: 2012-08-30Bibliographically approved

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