Headquarters–subsidiary interaction during the introduction of a value product in India

Roger Schweizer (), Katarina Lagerström () and Johan Jakobsson ()
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Roger Schweizer: University of Gothenburg
Katarina Lagerström: University of Gothenburg
Johan Jakobsson: University of Gothenburg

Asian Business & Management, 2021, vol. 20, issue 5, No 5, 666-688

Abstract: Abstract In India, it has become imperative for multinational corporations (MNCs) to succeed in the value segment. Based on a longitudinal case study of Volvo Bus and understanding the introduction of a value product as a subsidiary initiative, we take an internal perspective highlighting the interaction between the headquarters and the local subsidiary. We find that recurring resistance of the corporate immune system—as a political intervention or lack of resources and support—is a major hindrance for the introduction of a value product; this results in the MNC distancing itself from the value product opportunity over time.

Keywords: Value product; Multinational Corporation; HQ–subsidiary relationship; Subsidiary initiative; India; Corporate immune system (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1057/s41291-019-00098-8

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