Localization, Globalization and Networks of foreign Subsidiaries

Filip De Beule ()

Working Papers from eSocialSciences

Abstract: This research is about multinational enterprises (MNEs) and their subsidiaries abroad. The specific focus of the research is on the foreign subsidiaries? local embeddedness, global integration and multinational networks. As these linkages vary among subsidiaries and across time, the focal interest of this study is the processes of subsidiary strategic evolution. On the basis of a longitudinal survey of subsidiaries in China, the results show that most subsidiaries in China start as a quiescent-type of firm, which is clearly a stepping stone towards other more strategic roles as quiescent subsidiaries move out of this category towards autonomoustype or confederate-type firms and eventually active-type subsidiaries. The most prevalent trajectory of strategic evolution by multinational subsidiaries in China is by increasing the liaisons in the multinational network before gaining more local embeddedness towards a more globally active role for the foreign subsidiary. This is in contrast to previous research which found strategic evolution towards the quiescent-type firm in more developed economies. It is suggested that this contradictory result is linked to the emerging economy status of China, which still allows for much strategic progress to be made by foreign affiliates. URL:[http://fgks.in/IndexServer/tifac/article/148.pdf]

Keywords: market orientation and size; labor skills; technical capabilities; supplier networks; technology; vehicles; transfer of technology; competitive attributes; goods; economies; multinational subsidiaries; horizontal organization; MNE; China; Canada; Scotland (search for similar items in EconPapers)
Date: 2011-10
Note: Institutional Papers
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.esocialsciences.org/Download/repecDownl ... &AId=4500&fref=repec

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:ess:wpaper:id:4500

Access Statistics for this paper

More papers in Working Papers from eSocialSciences
Bibliographic data for series maintained by Padma Prakash ().