Conflict and control in MNC new product introduction

Abstract

One of the advantages of the multinational corporation (MNC) is that it can exploit new product ideas globally in a rapid manner. This raises the issue of control of MNC new product introductions. It has been demonstrated that control over MNC subsidiaries differs depending on the strategic role assigned to the subsidiary. But, in addition to its role in the MNC, a subsidiary also has a role in a business network of relationships with important customers, suppliers, and other business partners. There is a latent conflict between these two roles. This article formulates and analyzes a structural model in which the dependencies associated with the two roles are related to conflict and control in subsidiary new product introduction. The model is supported empirically and demonstrates that control is a matter of handling the latent conflict between the two roles.

Discretion in employment relations policy among foreign-controlled multinationals in Canada

“…In contrast, embeddedness within the local economy can enhance subsidiary autonomy (Almond, 2011b;Bélanger et al, 1999;Kristensen and Zeitlin, 2005). In exploring the inherent tensions between the strategic role assigned to a subsidiary by its parent company and its role within a local network of relationships with customers, suppliers and other business partners, Johanson et al (1996) found that greater dependence on local business networks, as opposed to the MNC, reduced HQ control over the subsidiary. Similarly, Kristensen and Zeitlin (2005) explored how a Danish subsidiary was able to use its long-established connections with local economic agents and institutions to reinforce its leverage with corporate headquarters.…”