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Characteristics of Low-Autonomy Foreign Subsidiaries: Value Chains, Staffing, and Intra-Organizational Relationships
Copenhagen Business School.
Bradford University School of Management.
Jönköping University, Jönköping International Business School, JIBS, Economics, Finance and Statistics. Jönköping University, Jönköping International Business School, JIBS, Center for Family Enterprise and Ownership (CeFEO).ORCID iD: 0000-0001-5776-9396
Manchester Metropolitan University.
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2012 (English)In: Journal of International Business and Economics, ISSN 1544-8037, E-ISSN 2378-9174, Vol. 13, no 1, p. 65-95Article in journal (Refereed) Published
Abstract [en]

This paper examines several characteristics of foreign subsidiaries with low autonomy. Data derived from a survey of 381 MNC subsidiaries located in Denmark, Germany and the UK demonstrate that low-autonomy subsidiaries are highly embedded in their respective MNC networks and that they establish a high number of intra-organizational relationships. Furthermore, such subsidiaries are typically managed by nationals of the MNC’s headquarters home country. Despite the fact that such subsidiaries have low autonomy, they employ a high proportion of professional staff members. We find a negative relationship between lower autonomy and the production activities carried out by the subsidiary. In fact, low-autonomy subsidiaries appear to be specialized in that they focus on a few value-chain activities and they typically serve as marketing outlets.

Place, publisher, year, edition, pages
2012. Vol. 13, no 1, p. 65-95
Keywords [en]
subsidiaries, autonomy, staffing, networks
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hj:diva-21150Local ID: IHHEFSISOAI: oai:DiVA.org:hj-21150DiVA, id: diva2:620965
Available from: 2013-05-13 Created: 2013-05-13 Last updated: 2018-09-05Bibliographically approved

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