Subsidiary Embeddedness is a Strategic Choice: Complementarity and the factors associated with different types of embeddedness

Suma Athreye, Georgios Batsakis and Satwinder Singh

No 13-05, DRUID Working Papers from DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies

Abstract: We conjecture that the Research and Development (R&D) subsidiary of a Multinational Enterprise (MNE) can be potentially embedded in three different networks viz. the science base of the home country, the science base of the host country, and/or the internal knowledge network of sister subsidiaries and parent MNE. We explore the type of relationship (complementary or substitutive) that exists between the three networks. Further, we develop a set of hypotheses about the factors that are associated with each form of embeddedness. We test these conjectures on data obtained from internationally located MNE R&D subsidiaries. We find that the three types of embeddedness are complementary to each other and the factors associated with each kind of subsidiary embeddedness are different.

Keywords: Multiple embeddedness; Multinational enterprises; R&D subsidiaries; complementarity; Subsidiary Roles; Seemingly unrelated regression (search for similar items in EconPapers)
JEL-codes: F23 L14 O32 (search for similar items in EconPapers)
Date: 2013
New Economics Papers: this item is included in nep-cse and nep-ino
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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