Search results for "Subsidiary"

ERP Systems in Multinational Enterprises: A literature Review of Post-implementation Challenges

2018

Abstract This paper reports on a literature review focusing on challenges during post-implementation of enterprise resource planning (ERP) systems in a multinational context. Through an extensive literature search across multiple databases, we identified 20 articles which address issues in this context. Global demands prove to be a key challenge and source of conflict between parent and subsidiary companies: frequently, parent companies seek control through standardized solutions, while local subsidiaries aim to sustain local processes and routines. The primary focus is to shed light on these contradictive objectives unfolding in this context and identify research areas that need more atten…

Misiņa bibliotēka Latvijas Valsts arhīva materiālos

2018

Developing international social capital: The role of communities of practice and clustering

2019

Abstract One criteria regarding where to invest in foreign markets is linked to the international social capital (ISC) that exists on the place, which enables the access to local knowledge and other location-specific advantages. There are alternative ways to create and make use of that ISC that are still unexplored by International Business literature. In this paper, we study the geographic communities of practice (CoP) that are formed by FDI firms from the same country-of-origin (the so-called country-of-origin clusters). For that purpose, the paper adopts a qualitative methodological approach through an inductive case study of expatriates from 13 Spanish subsidiaries co-located in China. …

Overcoming the liability of foreignness – A new perspective on Chinese MNCs

2021

Abstract We maintain that previous research on multinational corporations' liability of foreignness has underemphasized the importance of the firm's dependence on their parents, subsidiary and local resources. To address this issue, we conducted 43 semi-structured interviews with expatriate and local managers of Chinese high-tech MNCs over two years (2017–2019) and across China, Poland and Hong Kong to understand how they cope with the liability of foreignness in Poland. Using the resource dependence perspective, the linkage, leverage, learning (LLL) paradigm and the institutional view, we identified six dimensions affecting the liability of foreignness: resource commitment, information flo…

Subsidiary-specific advantages for inter-regional expansion: The role of intermediate units

2018

Abstract This paper explores the distinctive deployment of resources and capabilities by subsidiaries in order to develop an intermediate role within the MNC. Based on the regional management perspective, we focus on a specific intermediate role—the springboard subsidiary—that helps overcome the liability of inter-regional foreignness. Our results, which are based on a dataset covering 188 subsidiaries, show that the probability of taking on this role is contingent upon experiential knowledge about the target region, as well as a rich knowledge base derived from a wide range of activities and a broad geographical scope. Our findings also show that possession of slack resources does not nece…

Knowledge sharing and subsidiary R&D mandate development: A matter of dual embeddedness

2014

Sharing knowledge across borders has proven to be especially relevant to multinational corporations (MNCs). Foreign subsidiaries have become active players in these knowledge flows. However, the network effects of interacting with multiple agents on the evolution of the R&D role played by subsidiaries are still undeveloped. The present study focuses on changes in subsidiary capabilities and on the dynamic mechanisms by which their R&D role might evolve, especially, as a consequence of their interaction with a variety of knowledge networks. We examine this issue by conducting four longitudinal case studies of subsidiaries operating in Spain. Using an inductive approach to theory building, we…

The internalisation of foreign distribution and production activities

2001

Abstract This paper, using a logit model applied to a sample of 323 Spanish companies with international activities, analyses the key factors in the creation of sales and production subsidiaries. A high degree of fit between the results and the established hypotheses can be observed. Many interesting findings related to the main streams of entry mode research (Transaction Cost Theory and the Uppsala Model) have been supported. The intangibility and tacit nature of the products/processes involved in the foreign venture have been directly associated to wholly owned sales and production subsidiaries. Moreover, modes of entry used by Spanish firms are adapted as an incremental, experiential lea…

When are international managers a cost effective solution? The rationale of transaction cost economics applied to staffing decisions in MNCs

2005

Abstract A common claim in the literature of expatriation is the one referring to the high costs of expatriation. In this paper, on the basis of transaction cost economics (TCE), we show how limited this approach is. In particular, we consider a set of costs that, although ignored in traditional expatriation literature, must be accounted for when a MNC is deciding on whether to recruit expatriates or local managers in its subsidiaries. These costs include selection, training, and performance evaluation costs. We also formulate a series of hypotheses around the situations in which the total costs of recruiting expatriates are lower than those generated by local managers. We then test these h…

Intermediate units in multinational corporations: A resource dependency view on coordinative versus entrepreneurial roles

2021

Abstract Due to the dispersion of headquarters’ activities across organizational and geographical boundaries, intermediate units (IUs) are emerging as a key actor of international business. IUs are intermediate structural layers between headquarters (HQ) and local subsidiaries with specific HQ responsibilities. Our study relies on original data of 67 IUs and, taking on a Resource Dependence approach, explores empirically the two HQ roles attributed to IUs: coordinative versus entrepreneurial. According to our results, the main differences between both roles relate to external network embeddedness, internal network position and autonomy. We argue that these differences arise from the dominan…

Multinationality, foreignness and institutional distance in the relation between R&D and productivity

2012

Abstract This paper empirically examines to what extent being foreign and part of a multinational affects the endogenous relation between R&D and productivity. Our findings indicate that multinationals obtain in general higher R&D returns. Also, there is a negative foreignness effect in that domestic-owned multinationals outperform foreign subsidiaries. However, these effects are somehow moderated by the institutional distance between the home and host countries. These results, obtained for a panel of UK firms, are largely consistent with a set of hypotheses derived from the institutional and international business theories.