The MNC as an externally embedded organization: An investigation of embeddedness overlap in local subsidiary networks

Item Type Journal paper
Abstract

MNCs have been conceptualized as differentiated networks that, in turn, are embedded in external networks. Previous research has predominantly focused on the embeddedness of established subsidiaries into their local environment, omitting to shed light on the phenomenon of headquarters linkages to the local context which creates embeddedness overlap. We develop a model of why MNCs develop overlapping linkages to local subsidiary networks even if the subsidiaries have grown out of the initial start-up phase. Using detailed information on 168 European subsidiaries, we find that MNCs build and maintain more overlapping network ties when subsidiaries are high performers, hold important resources, operate in turbulent environments, and are closely connected to multinational actors as opposed to purely domestic firms.

Authors Nell, Philipp; Ambos, Björn & Schlegelmilch, Bodo
Journal or Publication Title Journal of World Business
Language English
Keywords External relationships; Multinationals; Embeddedness
Subjects business studies
HSG Classification contribution to scientific community
Refereed Yes
Date 1 October 2011
Publisher Elsevier Science
Place of Publication Amsterdam
Volume 46
Number 4
Page Range 497-505
Number of Pages 9
ISSN 1090-9516
ISSN-Digital 1878-5573
Publisher DOI 10.1016/j.jwb.2010.10.010
Depositing User Anja Schuster
Date Deposited 21 Nov 2012 21:47
Last Modified 23 Aug 2016 11:15
URI: https://www.alexandria.unisg.ch/publications/218063

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Citation

Nell, Philipp; Ambos, Björn & Schlegelmilch, Bodo (2011) The MNC as an externally embedded organization: An investigation of embeddedness overlap in local subsidiary networks. Journal of World Business, 46 (4). 497-505. ISSN 1090-9516

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https://www.alexandria.unisg.ch/id/eprint/218063
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