A three-fold typology of subsidiary roles (world mandate, specialized contributor, local implementer) was induced from the literature and its empirical validity was confirmed. Adopting a configurational approach, we then explored the ways in which subsidiary 'structural context' varied across subsidiary role types. Structural context characteristics were determined through a discussion of the underlying principles of the 'hierarchy' and 'heterarchy' models of multinational organization. The key findings were: (a) higher strategic autonomy in world mandates than in local implementers; (b) a more internationally configured value-chain in world mandates and specialized contributors than local implementers; (c) lower levels of internal product flows in world mandates than the other two types; and (d) a significantly lower performance in specialized contributors. Implications for a configurational model of subsidiary management, and for heterarchy as a higher level conceptualization, are discussed.
Research into the Multinational Corporation (MNC) evolved in two criticaldirections during the mid-eighties. First, a shift in emphasis towards the multinational subsidiary as a unit of analysis created a good understanding of the various strategic roles that subsidiaries take on [Bartlett & Ghoshal 1986; Jarillo & Martinez 1990; Roth & Morrison 1992]. Second, researchers began to explore new conceptualizations of the MNC that challenged many of the assumptions underlying traditional organizational analysis [Hedlund 1986;Ghoshal 1986]. The parallel growth of these two lines of inquiry is testament to their common empirical, and in many cases theoretical, roots. However, what is surprising is the lack of work that specifically addresses the linkages between the two. In essence, the former stream has focused on the meaning of strategy in the MNC subsidiary, while the latter has emphasized structure.
Both structural determinants and competitive factors can work to define the relevant environment for strategy formulation within an industry. This study examines the effects of each of these two sets of factors on global integration strategies, and finds that their impacts vary considerably from one industry to another. The study also investigates the relationship between a business's global integration strategy and its performance, using an industry'specific perspective. In the aggregate, the businesses studied appear to be under‐globalized. However, this relationship varied significantly by industry; four of the industries studied appeared to be under‐globalized, while the remaining three industries were at or near an optimal level of globalization.
This study examines the performance consequences of international attention, defined as the extent to which headquarters executives in the multinational enterprise (MNE) invest time and effort in activities, communications, and discussions aimed at improving their understanding of the global marketplace. Using detailed questionnaire and archival data on 135 MNEs, our analysis revealed three significant findings. First, international attention can be operationalized as a meta-construct that consists of three interrelated and reinforcing dimensions. Second, international attention has a curvilinear (inverted U-shape) relationship with MNE performance. Third, the performance benefits of international attention increase with three categories of moderating factors: the international assignment experience of top executives, the independence of value-adding activities across country locations, and the degree of industry dynamism. Journal of International Business Studies (2009) 40, 108–131. doi:10.1057/jibs.2008.64
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.