How subsidiaries gain power in multinational corporations
Ram Mudambi (),
Torben Pedersen and
Journal of World Business, 2014, vol. 49, issue 1, pages 101-113
This study focuses on how power is gained within large organizations, such as the intra-organizational network of MNCs. Drawing on resource dependence literature, this study develops and empirically tests a set of hypotheses aimed at explaining the multifaceted nature of power and decision making in multinational firms. Data collected from 2107 foreign-owned subsidiaries in seven European countries is used to test the hypotheses. The results indicate that mutual dependence and dependence imbalance provide strong explanations for subsidiary power. Furthermore, subsidiary power over strategic decisions in the MNC is gained through functional power, notably the possession of technological, rather than business-related, power or by the possession of both as they reinforce each other in strengthening the subsidiary's strategic power in the MNC network.
Keywords: Subsidiary functional- and strategic power; Subsidiary resources; Resource dependence theory (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:eee:worbus:v:49:y:2014:i:1:p:101-113
Ordering information: This journal article can be ordered from
http://www.elsevier. ... 620401/bibliographic
Access Statistics for this article
Journal of World Business is currently edited by F. Luthans and J.W. Slocum Jr.
More articles in Journal of World Business from Elsevier
Series data maintained by Zhang, Lei ().