MNC subsidiary channel relationships as extended links: Implications of global strategies

Mahima Hada, Rajdeep Grewal and Murali Chandrashekaran
Additional contact information
Mahima Hada: Aaronson Marketing and International Business Department, Zicklin School of Business, Baruch College, City University of New York, New York, USA
Rajdeep Grewal: Smeal College of Business, The Pennsylvania State University, University Park, USA
Murali Chandrashekaran: Sauder School of Business, University of British Columbia, Vancouver, Canada

Journal of International Business Studies, 2013, vol. 44, issue 8, 787-812

Abstract: Foreign subsidiaries of multinational corporations (MNCs) rely on external partners, such as channel partners, to achieve global objectives. We conceptualize the subsidiary’s channel partner as an extended link of the MNC’s internal network: thus, the subsidiary’s adaptation and execution of the MNC’s global strategies should influence the subsidiary’s channel relationship and performance. Building on the strategy–environment alignment framework, we study the influence of MNC global strategies (global efficiency, multinational flexibility, and worldwide learning) on a subsidiary’s channel commitment and the moderating influence of the host-country environment. Survey data from German and Japanese MNCs in the United States indicate the importance of global strategies to a channel relationship. For example, we find that an emphasis on multinational flexibility is detrimental, but worldwide learning benefits the subsidiary’s channel commitment. We also find that the host-country environment plays a contingent role: for example, a global efficiency strategy is beneficial for channel commitment in a stable environment, but detrimental in a dynamic environment. Our research offers key implications for MNCs; we suggest that when MNCs decide to lay emphases on global strategies the MNCs should consider not just their internal subsidiary network, but also their extended channel partner links that function in foreign markets.

Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.palgrave-journals.com/jibs/journal/v44/n8/pdf/jibs201334a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/jibs/journal/v44/n8/full/jibs201334a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

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:pal:jintbs:v:44:y:2013:i:8:p:787-812

Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/41267/PS2

Access Statistics for this article

Journal of International Business Studies is currently edited by John Cantwell

More articles in Journal of International Business Studies from Palgrave Macmillan, Academy of International Business
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().