Headquarters’ Knowledge of Subsidiary Network Contexts in the Multinational Corporation

Ulf Holm, Jan Johanson and Peter Thilenius

Chapter 10 in Knowledge, Networks and Power, 2015, pp 245-263 from Palgrave Macmillan

Abstract: Abstract Competence development in the multinational corporation (MNC) is driven by competition in local industrial clusters, and the operating units engaged in those clusters are critical in the development of the MNC, as Porter, Sölvell, and Zander (1990) posit. They assume that the operations of the single, unique subsidiary in relation to its unique industrial setting are critical in the development of the MNC. In this view, competence development is not created by organizational arrangements; rather, it is the outcome of a struggle in the market. But it does not take place in response to general market forces; it is driven by interaction with customers, suppliers, and competitors in the industrial cluster.

Keywords: Network Knowledge; Business Relationship; Competence Development; Foreign Subsidiary; Contextual Relationship (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-50882-9_10

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DOI: 10.1057/9781137508829_10

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