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Dual embeddedness, influence and performance of innovating subsidiaries in the multinational corporation
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies.
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies.
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies.
2014 (English)In: International Business Review, ISSN 0969-5931, E-ISSN 1873-6149, Vol. 23, no 5, 897-909 p.Article in journal (Refereed) Published
Abstract [en]

This study adopts a business network view to study the effects of subsidiary embeddedness on both subsidiary influence within the MNC and innovation-related business performance. Through Structural Equation Modeling we analyze subsidiary relationships connected to 85 innovation projects. The results show that external and corporate embeddedness are complementary contexts, although they affect subsidiary influence and performance differently. Whereas external embeddedness directly affects innovation-related business performance, corporate embeddedness strengthens the subsidiary's influence within the MNC, which in turn positively relates to performance. Moreover, as the study also finds that external and corporate embeddedness are positively associated, it stresses the issue of simultaneously balancing both external and corporate relationships (i.e., dual embeddedness) to nurture innovation projects.

Place, publisher, year, edition, pages
2014. Vol. 23, no 5, 897-909 p.
National Category
Business Administration
Identifiers
URN: urn:nbn:se:uu:diva-231249DOI: 10.1016/j.ibusrev.2014.02.002ISI: 000340339200005OAI: oai:DiVA.org:uu-231249DiVA: diva2:743917
Available from: 2014-09-05 Created: 2014-09-05 Last updated: 2017-12-05Bibliographically approved

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Ciabuschi, FrancescoHolm, UlfMartín, Oscar

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