When do distance effects become empirically observable? An investigation in the context of headquarters value creation for subsidiaries.

Item Type Journal paper
Abstract

Integrating distance research with the behavioral strategy literature on MNC headquarters-subsidiary relations, this paper explores how the distance between headquarters and subsidiaries relates to value added by the headquarters. We show for 124 manufacturing subsidiaries in Europe that, on average, distance is unrelated to value added by headquarters but that this effect is contingent upon the extent to which the subsidiary is locally embedded. Only after a certain threshold level of subsidiary embeddedness, distance is negatively related to headquarters value added. This effect is more pronounced for cultural, economic, and administrative distances than for pure geographic distance, highlighting the critical role of contextual variation for MNCs.

Authors Beugelsdijk, Sjoerd; Nell, Phillip C. & Ambos, Björn
Journal or Publication Title Journal of International Management
Language English
Subjects business studies
Refereed Yes
Date September 2017
Publisher Elsevier
Volume 23
Number 3
Page Range 255-267
ISSN 1075-4253
Depositing User Leonie Rogenhofer
Date Deposited 07 Jan 2019 16:26
Last Modified 02 Sep 2019 00:23
URI: https://www.alexandria.unisg.ch/publications/256248

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Citation

Beugelsdijk, Sjoerd; Nell, Phillip C. & Ambos, Björn (2017) When do distance effects become empirically observable? An investigation in the context of headquarters value creation for subsidiaries. Journal of International Management, 23 (3). 255-267. ISSN 1075-4253

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https://www.alexandria.unisg.ch/id/eprint/256248
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