Multinational corporations, inter-organizational networks and subsidiary charter removals

Christoph Dörrenbächer and Jens Gammelgaard

Journal of World Business, 2010, vol. 45, issue 3, 206-216

Abstract: This paper provides insights into the dynamics of a charter removal at a Hungarian subsidiary of the Siemens telecommunication switching division. By using inter-organizational network theory, we investigate how host-country factor endowments, the resource position of a subsidiary and the density of network exchange relationships within the organizational network influence the removal of a multinational corporate subsidiary's charter. The dispersion of resources in a multinational corporation drives intra-firm competition, which will typically lead to the removal of a subsidiary's charter if the subsidiary lacks specialized resources - typically an outcome of host country comparative disadvantages - and simultaneously holds a position on the periphery of the organizational network.

Keywords: Multinational; corporations; Inter-organizational; networks; Subsidiary; charters; Host-country; factor; endowments; Comparative; advantages; Subsidiary; evolution; Siemens; Telecommunication; switching; industry; Hungary (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1090951609001114
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: https://EconPapers.repec.org/RePEc:eee:worbus:v:45:y:2010:i:3:p:206-216

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 David Collings and Jonathan Doh

More articles in Journal of World Business from Elsevier
Bibliographic data for series maintained by Catherine Liu ().