A Missing Operationalization: Entrepreneurial Competencies in Multinational Enterprise Subsidiaries

Dimitratos, Pavlos; Liouka, Ioanna; Young, Stephen

doi:10.1016/j.lrp.2013.10.004

Cited by 53 publications

(77 citation statements)

References 85 publications

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“…From this perspective, autonomy determines a subsidiary's mandate to make decisions regarding new business entry and how much the parent controls the subsidiary in terms of that decision‐making (Roth and Morrison ). Previous studies have found a high level of decision‐making autonomy to be conducive to an increased level of initiative (Dimitratos, Liouka, and Young ; Reilly and Scott ). Nevertheless, the ability to pursue initiatives is dependent on the approval of parent companies and the resources they release (Ambos and Mahnke ).…”

Section: The Moderating Role Of Subsidiary Decision‐making Autonomymentioning

confidence: 94%

“…However, more recent developments suggest that subsidiaries, as semi‐autonomous firms situated outside the home country of their parent firm (Birkinshaw ), are increasingly becoming centers of innovation that create knowledge with strategic significance for the entire MNC (Ambos, Anderrson, and Birkinshaa 2010; Collinson and Wang ; Reilly and Scott ). It is a strategic role, which suggests that subsidiaries also have the agency to work on their own initiative (Forsgren, Pedersen, and Foss, ; Hamprecht and Schwarzkopf ) and therefore the opportunity to adopt independent entrepreneurial behavior that facilitates new entry into international markets (e.g., Ambos, Anderrson, and Birkinshaa 2010; Birkinshaw, Hood, and Young ; Boojihawon, Dimitratos, and Young ; Dimitratos, Liouka, and Young ; Reilly and Scott ).…”

Section: Eo and Subsidiary‐driven New International Entrymentioning

confidence: 99%

“…The balance of power in strategic decisions is usually in favor of the parent, and subsidiary‐driven initiatives are at a disadvantage compared to initiatives stemming from the parent that are already approved at the corporate level (Birkinshaw ; Delany ). As autonomous subsidiary–parent structures are known to promote important conditions for new entry by subsidiaries (Dimitratos, Liouka, and Young ; Reilly and Scott ), we expect EO to be a driving force for innovation and ideas in autonomous subsidiary–parent structures that can potentially be adopted and become new businesses for the subsidiary. The transformation from entrepreneurial posture into concrete new entries into MNC‐internal or external customer markets is assisted by the ability of the subsidiary to control its own budget, human resource policies, and marketing activity.…”

Section: The Moderating Role Of Subsidiary Decision‐making Autonomymentioning

confidence: 99%

“…From the entrepreneurship point of view, a subsidiary is “a semi‐autonomous entity with entrepreneurial potential” (Birkinshaw, Hood, and Young , p. 227). Following this view, subsidiaries have the potential for independent and entrepreneurial behavior that spurs subsidiary initiatives (e.g., Ambos, Andersson, and Birkinshaw ; Birkinshaw, Hood, and Young ; Boojihawon, Dimitratos, and Young ; Dimitratos, Liouka, and Young ; Reilly and Scott ).…”

Section: Introductionmentioning

confidence: 99%

“…While prior studies have explored the effects of entrepreneurial competencies on subsidiaries’ initiatives (Dimitratos, Liouka, and Young ) or initiative generation (Scott, Gibbons, and Coughlan ), this paper focuses on examining (1) the influence of EO on international new entry in terms of subsidiary initiatives. More importantly, the paper examines (2) how subsidiary–parent autonomy and the degree of internal formality in a subsidiary affect the EO–subsidiary international initiative relationship.…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Entrepreneurial Orientation and International New Entry: The Moderating Role of Autonomy and Structures in Subsidiaries

Hakala¹,

Sirén²,

Wincent³

2016

Journal of Small Business Management

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We study how the entrepreneurial orientation (EO) of subsidiaries influences international initiatives—new entries originating from a subsidiary that go beyond the local environment of the subsidiary. Building on structural contingency theory, we expect to find that the effect of EO is contingent on the structural conditions of decision‐making autonomy and the subsidiary decision‐making structure. Our results from 294 subsidiaries confirm that decision‐making autonomy and internal structures are important boundary conditions delimiting the effectiveness of EO in terms of international new entry. Although autonomy is highly important for international new entries, when it is restricted, formal rather than organic structures benefit new‐entry initiatives.

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Section: The Moderating Role Of Subsidiary Decision‐making Autonomymentioning

confidence: 94%

Section: Eo and Subsidiary‐driven New International Entrymentioning

confidence: 99%

Section: The Moderating Role Of Subsidiary Decision‐making Autonomymentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Entrepreneurial Orientation and International New Entry: The Moderating Role of Autonomy and Structures in Subsidiaries

Hakala¹,

Sirén²,

Wincent³

2016

Journal of Small Business Management

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Subsidiary capability and charter change: Making Birkinshaw and Hood's framework actionable

Dzikowska

Gammelgaard

Andersson

2023

Global Strategy Journal

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Research SummaryWe provide a more granular and comprehensive approach to subsidiary evolution and enhance the understanding of the complexity of the subsidiary's evolution in the era of value chain fine‐slicing. We extend Birkinshaw and Hood's model of general processes of subsidiary evolution into a model of functional evolutionary paths that represents nine configurations of charter and capability changes. We examine initiative, autonomy, and track record as determinants of 1455 functional evolutionary paths identified in 266 subsidiaries operating in the Polish and Swiss manufacturing sectors. Through a two‐level multinomial logistic regression model, we learn that subsidiary initiative and track record are positively related to an increase in subsidiaries' charter and capability enhancement, respectively. Subsidiary autonomy though, is negatively related to charter increase and capability enhancement.Managerial SummaryWe consider subsidiaries' initiative, autonomy, and track record as factors shaping the changes in functional responsibilities and corresponding capabilities. Our results show that frequent and successful initiatives support a functional charter increase but do not necessarily enhance corresponding functional capabilities. Furthermore, a lower level of decision‐making autonomy in efficiency‐driven organizations does not translate into difficulties with a functional charter increase. A subsidiary can benefit from lower autonomy by focusing subsidiary‐development efforts on areas aligned with the headquarters' interests. A proven track record does not translate into a functional charter increase; in some cases, it even increases the likelihood of charter depletion. Nonetheless, it increases the likelihood of enhancing functional capability.

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An intergenerational competency framework: Competencies for knowledge sustainability and start‐up development in the digital age

Nurhas

Geisler

Pawlowski

2022

Sustainable Development

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In this study, we looked at the competencies and changes in the competency spectrum required for global start‐ups in the digital age. Specifically, we explored intergenerational collaboration as an intervention in which experienced business‐people from senior adult groups support young entrepreneurs. We conducted a Delphi study with 20 experts from different disciplines, considering the study context. The results of this study shed light on understanding the necessary competencies of entrepreneurs for intergenerationally supported start‐up innovation by providing 27 competencies categorized as follows: intergenerational safety facilitation, cultural awareness, virtues for growth, effectual creativity, technical expertise, responsive teamwork, values‐based organization, and sustainable network development. In addition, the study results also reveal the competency priorities and the minimum requirements for each competency group based on the global innovation process and can be used to develop a readiness assessment for start‐up entrepreneurs.

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A Missing Operationalization: Entrepreneurial Competencies in Multinational Enterprise Subsidiaries

Cited by 53 publications

References 85 publications

Entrepreneurial Orientation and International New Entry: The Moderating Role of Autonomy and Structures in Subsidiaries

Entrepreneurial Orientation and International New Entry: The Moderating Role of Autonomy and Structures in Subsidiaries

Subsidiary capability and charter change: Making Birkinshaw and Hood's framework actionable

An intergenerational competency framework: Competencies for knowledge sustainability and start‐up development in the digital age

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