MNCs' subsidiaries in emerging countries driving internationalisation and innovation: a case study in Brazil

Costa, Renato Machado; Bruno, Marcos Alberto Castelhano; Vasconcellos, Eduardo Pinheiro Gondim de; Silveira, Luiz Antonio Bloem da

doi:10.1504/ijatm.2015.072881

Cited by 10 publications

(11 citation statements)

References 26 publications

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“…This is due to the increasing complexity of the environment (Nohria and Ghoshal, 1994;Hoenen and Kostava, 2015) as a result of global trends such as the distinctiveness of customer desires, the increasing intelligence of data processing and new technologies in industry sectors (e.g., Deloitte, 2015;McKinsey & Company, 2016) which in any case are already characterised by the increasing importance of some growing markets which account for most of today's growth (e.g., Ambos and Birkinshaw, 2010;Prahalad and Battacharyya, 2008;Obaya, 2014;Wang and Balcet, 2012). To satisfy demand among customers with rising incomes, but also in part to develop and manufacture products for the entire corporate group in order to build country-specific knowledge and competences, the subsidiaries in these markets strike for local orientation (Hoenen and Kostova, 2015;Costa et al, 2015;Jürgens and Krzywdzinski, 2013), autonomy and decentralisation (Yu et al, 2009;Gammelgaard et al, 2012;Baglieri et al, 2014). This not only increases local embeddedness (Nell and Ambos, 2013) but also leads to a rising heterogeneity in the steering of subsidiaries.…”

Section: Introductionmentioning

confidence: 99%

Heterogeneity of the steering of foreign subsidiaries in multinational automotive companies

Proff

2018

IJATM

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Rising environmental complexity is leading to challenges in the steering of foreign subsidiaries in multinational companies (MNCs). The actual local embeddedness literature recommends that global standardisation and the most homogeneous steering of foreign subsidiaries possible should be subordinated to the efforts of the important subsidiaries to adopt a more local orientation and to achieve more heterogeneity in steering. This paper seeks to clarify the present extent of the heterogeneity of steering in MNCs. A literature review is carried out to find reasons for the demand for more heterogeneous steering and to identify decision principles that help in making efficient decisions. Hypotheses are made as to how far these decision principles bring about heterogeneous steering. They serve as a basis for the empirical examination of multinational German automotive companies. Contrary to expectations, the heterogeneity of steering in MNCs is still relatively low, but a clear influence of the different decision principles on the heterogeneity of the steering was found.

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Section: Introductionmentioning

confidence: 99%

Heterogeneity of the steering of foreign subsidiaries in multinational automotive companies

Proff

2018

IJATM

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“…Push-factors drive a continuous process of further internationalisation for sustained competitiveness while pull-factors drive location decisions based on strategies for lowering costs, gaining market access, or accessing strategic assets such as innovation capabilities (Iammarino and McCann, 2013;Moncada-Paternò-Castello et al, 2011). Emerging market locations are attracting an increasing and considerable share of global FDI, although these locations have significantly different characteristics from MNCs' traditional locations (Costa et al, 2015). Over the past decades, Asia and in particular China has evolved into one of the most attractive locations for FDI and is today the majority single emerging market location for FDI (Jensen and Pedersen, 2011).…”

Section: Introductionmentioning

confidence: 99%

Danish multinational corporations in China: an evolutionary approach to internationalisation

Haakonsson¹

2017

IJMCS

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Multinational corporations (MNCs) strategise in a dynamic multi-polar world consisting of changing environments at home and abroad. They continuously face a new set of push-and pull-factors for internationalising activities. In recent decades, internationalisation has been reaching into emerging markets, which are significantly different from MNCs' traditional locations. As globalisation progresses, internationalisation increasingly involves exploitation strategies, i.e., offshoring of production; market access; and exploration strategies such as internationalisation of innovation. This article looks into how Danish MNCs have evolved into the Chinese economy, investigating the trajectories of how and when four Danish MNCs entered the Chinese economy and how the strategy patterns have emerged from cost reduction, to market access, and recently to innovation. Over 30 years, China has developed into an important hub for MNC offshoring of innovation. The four MNCs have changed the mandate of the Chinese innovation sites into global centres of excellence.

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“…Push-factors drive a continuous process of further internationalisation for sustained competitiveness while pull-factors drive location decisions based on strategies for lowering costs, gaining market access, or accessing strategic assets such as innovation capabilities (Iammarino & McCann, 2013;Moncada-Paternò-Castello et al, 2011). Emerging market locations are attracting an increasing and considerable share of global FDI, although these locations have significantly different characteristics from MNCs' traditional locations (Costa et al, 2015). Over the past decades Asia and in particular China has evolved into one of the most attractive locations for FDI and is today the majority single emerging market location for FDI (Jensen & Pedersen, 2011).…”

Section: Introductionmentioning

confidence: 99%

Danish multinational corporations in China: an evolutionary approach to internationalisation

Haakonsson¹

2017

IJMCS

View full text Add to dashboard Cite

Multinational corporations (MNCs) strategise in a dynamic multi-polar world consisting of changing environments at home and abroad. They continuously face a new set of push-and pullfactors for internationalising activities. In recent decades, internationalisation has been reaching into emerging markets, which are significantly different from MNCs' traditional locations. As globalisation progresses, internationalisation increasingly involves exploitation strategies, i.e. offshoring of production; market access; and exploration strategies such as internationalisation of innovation. This paper looks into how Danish MNCs have evolved into the Chinese economy, investigating the trajectories of how and when four Danish MNCs entered the Chinese economy and how the strategy patterns have emerged from cost reduction, to market access, and recently to innovation. Over 30 years China has developed into an important hub for MNC offshoring of innovation. The four MNCs have changed the mandate of the Chinese innovation sites into global centres of excellence.

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MNCs' subsidiaries in emerging countries driving internationalisation and innovation: a case study in Brazil

Cited by 10 publications

References 26 publications

Heterogeneity of the steering of foreign subsidiaries in multinational automotive companies

Heterogeneity of the steering of foreign subsidiaries in multinational automotive companies

Danish multinational corporations in China: an evolutionary approach to internationalisation

Danish multinational corporations in China: an evolutionary approach to internationalisation

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