Subsidiary strategy process : autonomy, distinctiveness, competitive advantage and performance

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Nair, Anup and Sminia, Harry (2019) Subsidiary strategy process : autonomy, distinctiveness, competitive advantage and performance. In: BAM 2019: 33rd Annual Conference of the British Academy of Management, 2019-09-03 - 2019-09-05, Aston University.

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Abstract

The extent to which a subsidiary of a multinational company (MNC) can shape its destiny depends on a range of factors (Kostova, et al., 2016; Strutzenberger & Ambos, 2014; Paterson & Brock, 2002). Initially, a subsidiary was seen simply as an agent acting on behalf of an MNC in a host country. Theoretically, the HQ-subsidiary relationship was elaborated in a top-down fashion; problematized in terms of how a subsidiary can best be managed by the HQ and integrated into the larger whole to provide the most value to the MNC. More recently there has been a mushrooming of interest in research that seeks to understand strategic management issues from the subsidiary point of view. There is even some recognition that less top-down interference can be beneficial to both the subsidiary and the MNC.

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