Developing subsidiary contribution to the MNC--Subsidiary entrepreneurship and strategy creativity

Pamela Scott, Patrick Gibbons and Joseph Coughlan

Journal of International Management, 2010, vol. 16, issue 4, 328-339

Abstract: Despite its theoretical and managerial significance, subsidiary entrepreneurship and its effects on subsidiary contribution remain underexplored in the literature. We propose that subsidiary entrepreneurship encourages more creative strategic responses to escalating environmental change. We explore the direct and mediating effects of subsidiary entrepreneurship on subsidiary contribution to the MNC, particularly subsidiary strategy creativity. We use structural equation modelling to test our propositions on data generated from surveying the population of Irish subsidiaries of foreign MNCs, and find strong support for our theoretical predictions. The managerial implications of subsidiary entrepreneurship in generating creative strategy, prompting strategic initiatives and improving performance are discussed.

Keywords: Subsidiary; Entrepreneurship; Strategy; creativity; Strategic; initiative; Performance (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (14)

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