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Value Creation at the Subsidiary Level: Testing the MNC Headquarters Parenting Advantage Logic
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. LUISS Business Sch Rome, Rome, Italy..
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies. Univ Publ Navarra, Pamplona, Spain..ORCID iD: 0000-0003-1043-2133
2017 (English)In: Long range planning, ISSN 0024-6301, E-ISSN 1873-1872, Vol. 50, no 1, 48-62 p.Article in journal (Refereed) Published
Abstract [en]

The purpose of this study is to test the assumptions of the headquarters parenting advantage in multinational firms within the context of subsidiary innovation processes. Specifically, we explore the relationship between the selective involvement of headquarters in both innovation development and transfer processes and their related performance in a data set of 85 innovation projects analysed with structural equation modelling. The findings provide only limited support to the parenting advantage logic as they show that although the headquarters are able to select subsidiary-level strategic innovation processes, their involvement is hampering the performance of these processes. Consequently, we offer new extensions to the reasoning behind the parenting advantage logic by introducing four complementary theoretical explanations for the potentially harmful effects of headquarters' involvement in subsidiary innovation-related activities.

Place, publisher, year, edition, pages
Elsevier, 2017. Vol. 50, no 1, 48-62 p.
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:uu:diva-301652DOI: 10.1016/11rp.2016.03.004ISI: 000397693000014OAI: oai:DiVA.org:uu-301652DiVA: diva2:954940
Available from: 2016-08-24 Created: 2016-08-24 Last updated: 2017-04-21Bibliographically approved

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Ciabuschi, FrancescoForsgren, MatsMartín Martín, Oscar
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