EconPapers    
Economics at your fingertips  
 

How subsidiaries influence innovation in the MNE value chain

Edward Gilmore, Ulf Andersson and Noushan Memar

UNCTAD Transnational Corporations Journal

Abstract: As multinational enterprises increasingly disaggregate their value chains and assign functional responsibilities to foreign subsidiaries, they are increasingly focused on augmenting spatially distant activities and resources. At the same time, despite subsidiary managers operating at the “middle” of the organization and having awareness of operational and strategic contexts, they have received significant criticism for hindering the successful coordination and integration of value chain activities. This appears counterintuitive as, on the one hand, MNEs are increasingly disaggregating their value chains and, on the other, subsidiary managers act as frontline managers, at the intersection of their local context and the MNE. We examine the resource stocks of six subsidiaries and the activities of subsidiary managers locally and across global value chains. The results indicate that integration responsibilities are decentralized, as properties of subsidiary mandates, and that the subsidiary managers’ connectivity activities significantly affect the strategic influence that they subsidiary can exercise locally and globally. The results also contain important information for policymakers.

Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://unctad.org/en/PublicationChapters/diaeia2018d3a4_en.pdf (application/pdf)

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:unc:tncjou:11

Access Statistics for this article

UNCTAD Transnational Corporations Journal is currently edited by Mathabo Le Roux

More articles in UNCTAD Transnational Corporations Journal from United Nations Conference on Trade and Development Contact information at EDIRC.
Bibliographic data for series maintained by Mathabo Le Roux ().

 
Page updated 2020-02-22
Handle: RePEc:unc:tncjou:11