EconPapers    
Economics at your fingertips  
 

How subsidiaries gain power in multinational corporations

Ram Mudambi (), Torben Pedersen and Ulf Andersson

Journal of World Business, 2014, vol. 49, issue 1, pages 101-113

Abstract: 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)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1090951613000035
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

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.com/wps/find/journaldescription.cws_home/620401/bibliographic
http://www.elsevier. ... 620401/bibliographic

Access Statistics for this article

Journal of World Business is currently edited by F. Luthans and J.W. Slocum

More articles in Journal of World Business from Elsevier
Series data maintained by Zhang, Lei ().

 
Page updated 2014-10-31
Handle: RePEc:eee:worbus:v:49:y:2014:i:1:p:101-113