Parenting Advantage in the MNC : An Embeddedness Perspective on the Value Added by Headuarters

Item Type Journal paper

What determines the value an MNC's headquarters adds to its own affiliates? In this paper, we shed light on this question by linking the embeddedness view of the multinational corporation to the literature on parenting advantage. We test our hypotheses on an original dataset of 124 manufacturing subsidiaries located in Europe. Our results indicate that the external embeddedness of the MNC is an antecedent to headquarters' value creation. We find that headquarters' investments into their own relationships with the subsidiaries' contexts are positively related to the value added by headquarters. Furthermore, this relationship is stronger when the subsidiary itself is strongly embedded. We discuss implications for the MNC literature, embeddedness research, and the literature on parenting and headquarters' roles.

Authors Nell, Philipp & Ambos, Björn
Journal or Publication Title Strategic Management Journal
Language English
Keywords local linkages, embeddedness, parent value added, parenting, headquarters-subsidiary relationships
Subjects business studies
HSG Classification contribution to scientific community
Refereed Yes
Date September 2013
Publisher Wiley
Place of Publication Oxford UK
Volume 34
Number 9
Page Range 1086-1103
Number of Pages 18
ISSN 0143-2095
Publisher DOI 10.1002/smj.2058
Depositing User Anja Schuster
Date Deposited 21 Nov 2012 21:31
Last Modified 23 Aug 2016 11:15


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Nell, Philipp & Ambos, Björn (2013) Parenting Advantage in the MNC : An Embeddedness Perspective on the Value Added by Headuarters. Strategic Management Journal, 34 (9). 1086-1103. ISSN 0143-2095

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