Redundancies in External Relationships of Multinational Corporations – A Firm-Level Conceptual Model

Item Type Book Section
Abstract

The conceptualization of the multinational corporation (MNC) as a differentiated network suggests that the subsidiaries’ level of embeddedness in their local environment is crucial, as it is the basis for subsidiary-specific advantages and entrepreneur ship (Andersson et al., 2002; Frost, 2001). In addition to possessing important resources, the subsidiaries of a differentiated MNC are conceptualized as being relatively autonomous and powerful, striving at least in part for their own goals (Birkinshaw, 1997; Hedlund, 1986; Nohria and Ghoshal, 1997; Rugman and Verbeke, 2001). The headquarters’ (HQ’s) role is to design differentiated coordination and control mechanisms to ensure that the MNC acts as a differentiated but integrated network of units (Nohria and Ghoshal, 1997). However, this HQ role is very difficult to fulfil if not contradictory. Especially critical is the underlying assumption that HQs have knowledge about a large variety of subsidiary contexts, and that they are able to and possess the power to orchestrate and manage the differentiated network (Björkman and Forsgren, 2000; Holm et al., 1995).

Authors Nell, Phillip C.; Andersson, Ulf & Ambos, Björn
Language English
Subjects business studies
Date 2013
Publisher Palgrave MacMillan
Page Range 181-199
Title of Book The Changing Geography of International Business
Publisher DOI https://doi.org/10.1057/9781137277503_11
Depositing User Leonie Rogenhofer
Date Deposited 07 Jan 2019 16:49
Last Modified 07 Jan 2019 16:49
URI: https://www.alexandria.unisg.ch/publications/256256

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Nell, Phillip C.; Andersson, Ulf & Ambos, Björn: Redundancies in External Relationships of Multinational Corporations – A Firm-Level Conceptual Model. In The Changing Geography of International Business. Palgrave MacMillan, 2013, S. 181-199.

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https://www.alexandria.unisg.ch/id/eprint/256256
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