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In the present study, we examine the question of whether the cultural characteristics of the country of the parent company are related to the posting practices of the parent company. According to our hypothesis, the management culture of the sending (parent) company influences the employment of foreign expats in local subsidiaries. In this research we use interviews and multivariate statistical analysis of survey data from five CEE countries, an important but relatively less examined region for global HR mobility. We found a significant relationship between cultural differences and expatriate assignment practices of MNCs. However, based on the strength of the relationship, we can conclude that in addition to management culture, other influencing factors typically influence posting decisions. Our results support Hofstede’s suggestion about the cultural dependence of management methods from a specific, management of expatriates, perspective.

This paper evaluates the influence of multiple actors in both formal and informal governance systems on corporate social responsibility (CSR) practices. Drawing on institutional theory, a quantitative survey was developed and conducted of a sample of 140 firms in the electronics, food, textiles, toys and personal care sectors in Brazil. We examine how institutional pressures and firm-level agency influence the emergence of different patterns of CSR. We distinguish two clusters of companies: active companies identify business outcomes and actors that effectively exert an influence on their CSR practices, while passive companies consider institutional pressures to be of minor importance. Our contribution relates first, to institutional theory concerning the role of different actors in influencing the implementation of social and environmental practices; second, to the importance of collective coordination or its absence in shaping the specific characteristics of CSR; and third, to the agency of firms in responding to institutional pressures as being dependent on their perceptions of business outcomes. The theoretical insights drawn from this study should be applicable to similar countries, that is, to emerging but politically and economically unstable markets with marked social and economic inequalities.

This article ties in directly with recently intensified interest in business models in international business (IB), using the energy transition as empirical context to explore their relevance in firm internationalization. The global energy transition presents a challenge for almost all industries, but some face specific difficulties particularly important from an IB perspective. We study a set of European firms that used to operate in a highly regulated context with (partial) state ownership, until government-directed market liberalization started to allow further competition and internationalization. Existing firms were prompted to adapt their business models to these changes, with new ventures entering the market to reap opportunities with novel energy-related technologies and business models. Linking insights from strategic management to the IB literature, we conceptualize business model-related specific advantages (BMSAs), and explore the role of BMSAs in the internationalization of the firms in our sample. We also uncover barriers to BMSA recombination in (potential) host countries, consider BMSA location-boundedness, and discuss implications for firms’ international expansion by presenting a new framework. Consequences for the energy transition and the actors already involved and (in)directly confronted with it are explicated, while outlining promising areas for further research, building on the insights and limitations of our study.

The genus Ceropegia L. of Family Apocynaceae, subfamily Asclepiadoideae comprises 213 accepted taxa distributed in tropical and sub-tropical regions of Africa, India, Australia and neighbouring regions. The taxa are mainly identified on the basis of flower morphology. A study was undertaken to reveal micromorphology of 26 taxa distributed in Western Ghats of India to solve the identity problems. The micromorphology is studied with standard microscopic methods in five replicates of each character and taxa to reveal the parameters, distribution of stomata, stomatal index, stomatal density, epidermal cell wall pattern and stomatal measurements. The data obtained was subjected to ANOVA to find out the experimental mean, standard deviation and standard error. A consensus phylogeny tree is constructed using the PAST on the basis of Jaccard similarity coefficient. Results of study revealed that, micro morphological characters, viz., type of stomata, number and characters of subsidiaries, anticlinal cell wall pattern, and stomatal index are very significant in delimitation of closely allied taxa. Beside ‘paracytic’ stomata, ‘tetracytic’, ‘isotricytic’, & ‘anomocytic’ stomatal types, and amphistomatic distribution are recorded for first time in Ceropegia. The taxa are separated easily from each other using vegetative micromorphology and can be identified even in absence of flowers. An identification key and phylogenetic tree is derived on the basis of vegetative micro-morphology and gross morphological characters.

This study reviews the presence of articles related to Central and Eastern Europe (CEE) in Web of Science (WOS). Bibliometric analysis first reveals the trends of CEE-related articles in the areas of international business (IB), management and economics up to 2016. The results show steady growth in absolute and relative numbers after 1990, intensifying since 2010. Second, we conduct topic research using network analysis with blockmodeling. We identify a network of topics and their interrelations over time and used them to periodise the CEE-related research in IB. The most-cited CEE-related IB articles and the main citation path are also presented. The analysis adds to the discussion of how the CEE region is explored in IB research, its contributions, impacts and the challenges facing regional research in the future. In this study, a methodology and framework for performing a comprehensive bibliometric analysis on regional IB research is applied.

Microfoundations have become an important theme in recent macro-management research. However, the international management (IM) field is an exception to this. We document the lack of attention on microfoundations in IM research by focusing on knowledge sharing – a key IM research field – which we investigate by means of a keyword-based literature study of the leading IM and general management journals. We discuss possible reasons why microfoundations have so far met with less resonance in IM research. We point to the training and background of IM scholars as possible reasons. We also highlight the significance that IM scholars place on context and structure in explanation. These may be seen as contrary to a microfoundations perspective, a view that we show is incorrect. We end by identifying several microfoundational issues in IM research, calling for a sustained effort with respect to theory, heuristics, and empirics.

Comprendre la dynamique langagière et son articulation avec le pouvoir et la socialisation dans le cadre d’une filiale, en mobilisant l’apport de Bourdieu, tel est l’objectif de cette recherche. L’analyse de contenu thématique a démontre que l’appropriation du langage légitime s’est faite différemment selon le rang hiérarchique occupé par les acteurs du champ. Cette appropriation est liée à la reconnaissance de la classe dominante et aux avantages du champ. Nos résultats démontrent que la formation initiée par la maison-mère dans le but de légitimer le nouveau langage a accentué les jeux d’influence et de pouvoir au sein de la filiale., This research aims to understand language dynamic and its association with power and socialization within a Qatari subsidiary established in Tunisia. To achieve this goal, we conduct a thematic content analysis based on Bourdieu framework. 14 employees were interviewed and results demonstrate that legitimate language is absorbed differently according to employees’ hierarchical level. Furthermore, language training established by the multinational was shown to be ineffective since it has reinforced power imbalances within the subsidiary., Comprender la dinámica lingüística y su articulación con el poder y la socialización en el marco de una filial, movilizando la contribución de Bourdieu, tal es el objetivo de esta investigación. El análisis temático mostró que la apropiación del lenguaje legítimo se hizo de manera diferente según el rango jerárquico ocupado por los actores del campo. Este crédito está relacionado con el reconocimiento de la clase dominante y los beneficios del campo. Nuestros resultados muestran que la capacitación iniciada por la empresa matriz para legitimar el nuevo lenguaje ha acentuado la influencia y el poder dentro de la filial.

Анализируются подходы к управлению земельными участками и другими объектами недвижимости акционерным обществом «Международный аэропорт Шереметьево»., Analysis of the approaches to land management and other real estate objects by Sheremetyevo International Airport.

Низка проведених досліджень свідчить про те, що реалізація ініціатив корпоративної соціальної відповідальності (КСВ) та діяльність мультинаціональних компаній (МНК) відрізняються залежно від регіону. При цьому дочірні підприємства МНК повинні реагувати як на виклики міжнародного ринку, так і враховувати інтереси місцевих стейкхолдерів. У статті досліджено КСВ-дилеми мультинаціональних компаній. Дослідження здійснено в наступній логічній послідовності: визначено основні стимули проведення заходів у рамках політики КСВ та встановлено оптимальне співвідношення між глобальним тиском МНК та очікуваннями зацікавлених сторін на локальному рівні; виявлено механізми, які використовуються з метою урегулювання проблем; проведено 10 півструктурованих дослідницьких інтерв’ю на рівні Угорських дочірніх компаній; виявлено 3 ключові проблеми, а також 7 механізмів їх вирішення. Автором зазначено, що до трьох ключових проблем належать: недостатність фінансових та трудових ресурсів у сфері КСВ, відсутність правової та культурної підтримки ініціатив головного офісу, а також виникнення складнощів у процесі формування ефективної стратегії у відповідь на багаточисленні потреби стейкхолдерів. У свою чергу, автором наголошено, що дочірні підприємства використовують різні механізми у процесі вирішення проблем. Загалом, дочірні підприємства націлені на ведення переговорів із головним офісом МНК з метою отримання достатнього рівня фінансових ресурсів для проведення КСВзаходів на локальному рівні, а також отримання свободи у фінансування заходів імплементації КСВ. У випадку неможливості накопичення великого запасу ресурсів, доцільним є прийняття стриманої або мінімальної стратегії КСВ, яка, по суті, являється філантропією чи благодійністю. У свою чергу, у тому випадку, коли соціальні цінності країни, де функціонує, МНК не відповідають її глобальним цілям, дочірні компанії часто надають перевагу стратегії "замикання в собі", тобто просування глобальних цінностей в щоденні операції в межах однієї компанії без поширення їх у практику інших. При цьому дочірні компанії використовують відповідні механізми з метою виявлення потреб основних стейкхолдерів та формування таких заходів, які є невід’ємними елементами їх локальних КСВ стратегій. Автором зазначено, що дочірні компанії часто співпрацюють із нерядовими громадськими організаціями та/або органами місцевого самоврядування задля досягнення власних КСВ-цілей. У статті визначено, що більшість дочірніх компаній аналізують діяльність інших підрозділів МНК у регіоні з метою виявлення дієвих механізмів протистояння їх локальним КСВ-проблемам. Several studies have confirmed that the implementation of corporate social responsibility (CSR) initiatives and activities of multinational companies (MNCs) differed across locations. Subsidiaries of MNCs must both respond to internal pressures coming from global headquarters and expectations of local stakeholders. The major research questions of the study are the following: What are the major drivers of their CSR activities and how do they balance between the global pressure of MNC headquarters and the expectations of the local stakeholders? What coping mechanisms do they implement in order to tackle the CSR challenges? As a result of conducting 10 semi-structured research interviews at Hungarian subsidiaries, 3 key CSR challenges, and 7 coping mechanisms were identified. The 3 major challenges include the lack of financial and human resources dedicated to CSR activities, the lack of legal or cultural support of the headquarters' initiatives in the host country, and the difficulty to form an effective CSR strategy to respond to the various needs of local stakeholders. The subsidiaries use different coping mechanisms to tackle the challenges. They usually pursue continuous bargaining with MNC HQs in order to have sufficient financial resources for local CSR actions and to get freedom for creating their own CSR approaches reacting to genuine local needs. If they are not able to accumulate plentiful resources, they may implement a low key or minimalistic CSR strategy that usually means solely philanthropy or charity. When host country social values do not meet global MNC norms, subsidiaries often choose to turn inward, i.e. promoting global values only inside the company in daily operations, and not propagating these values to the wider public. Nevertheless, the most prevalent strategy may be more careful balancing between global MNC norms and local values. Subsidiaries use various mechanisms to detect the needs of their key stakeholders and to create those actions that can be the most vital elements of their local CSR strategies. They often co-operate with NGOs and/or the local government to reach their CSR objectives. Numerous subsidiaries do business integrated CSR to serve local stakeholders' needs in the most effective way. Finally, most subsidiaries are constantly scanning MNC units in the region to find out how they confront their local CSR challenges. This mechanism seems to work well due to similarities among host country cultures in the CEE region.

Prior research establishes that international control by multinational corporations is based on three dimensions: centralisation, formalisation and socialisation. New control mechanisms appeared in the last decade, such as enterprise resource planning, short-term assignments and regional centres. Do these new mechanisms fit the three control dimensions? How do MNCs articulate their control mechanisms, including new ones? Using interviews with 77 managers of 47 French MNCs in 11 Asian countries, this study presents an exploratory factor analysis and clustering. The findings show that French MNCs control their Asian subsidiaries through four dimensions: centralisation of decision making, formalisation of subsidiaries, socialisation and expatriation., Le contrôle à l'international de leurs activités par les multinationales implique trois dimensions: centralisation, formalisation et socialisation. De nouveaux mécanismes de contrôle (les ERP, les missions de court terme, les sièges régionaux...) se sont développés récemment. S'inscrivent-ils dans ces trois dimensions ? Comment les multinationales articulent-elles l'ensemble des mécanismes de contrôle ? L'analyse des réponses de 77 cadres de 47 multinationales françaises dans 11 pays d'Asie, par factorisation et classification hiérarchique, révèle quatre dimensions de contrôle : centralisation de la décision, formalisation des filiales, socialisation et expatriation. Cinq types de multinationales se distinguent selon la combinaison des mécanismes de contrôles., Las multinacionales controlan sus actividades al internacional según tres dimensiones: centralización- formalización- socialización. Recientemente, nuevos mecanismos de control se han desarrollado (ERP, misiones de corto plazo, sedes regionales…). ¿Esos elementos se inscriben en esas tres dimensiones? ¿Cómo las multinacionales coordinan el conjunto de los mecanismos de control? Analizando las respuestas de 77 jefes de 47 multinacionales francesas instaladas en 11 países asiáticos, según un proceso de factorización y clasificación jerárquica, este estudio revela cuatro dimensiones de control: centralización de la decisión, formalización de las sucursales, socialización y expatriación. Cinco tipos de multinacionales se destacan entonces según la combinación de sus mecanismos de control.

Este artículo aborda el derecho societario en relación con la creación de cadenas de propiedad a través de sociedades matrices y subordinadas. Además, se presenta la legislación colombiana sobre el tema, acompañada por un análisis sobre la tendencia a generar situaciones de control fuera del país por parte de los grupos empresariales con mayor liquidez, a partir de los datos del índice COLCAP. Corporate law is dealt with, in relation to creation of property chains through parent companies and subordinate companies. The Colombian legislation on the subject is presented and an exercise of analysis is made about the tendency to generate situations of control outside the country by business groups, with greater liquidity from the data of the COLCAP Index.

The purpose of this article is to assess how management level as a contextual factor interacts with personal characteristics in predicting expatriate performance. In particular, we focused on proactive personality (the individual’s disposition to change the organizational environment) and self-control (the individual’s disposition to change oneself to fit the organizational environment). Surveying 307 business expatriate managers in China, we hypothesized that in relation to work outcomes, the effect of proactive personality would be stronger for CEOs while the effect of self-control would be stronger for non-CEOs. We found both proactive personality and self-control to have favorable effects on our performance indicators: job performance, effectiveness, and time to proficiency. In line with our prediction, we also found the effect of proactive personality on job performance to be stronger for CEO expatriates while the effect of self-control on performance was stronger for non-CEO expatriate managers.

In the knowledge society, multinationals and, more specifically, their subsidiaries acquire great importance as a source of competitiveness for the multinational as a whole. From this perspective, this article has a double objective: (1) to define ambidextrous subsidiary, and (2) to explore if subsidiaries are ambidextrous. A quantitative methodology is used on a sample of 102 Spanish subsidiaries of foreign multinationals from knowledge-intensive sectors. Findings show that the subsidiaries analyzed are highly explorers of knowledge. However, despite the coherence between the roles played and their international competitive strategies, not all subsidiaries turned out to be ambidextrous. Only those with an integrated player role and transnational strategies can be considered as such. JEL classification: M15; M16; F23. Resumen En la sociedad del conocimiento, las multinacionales y, más específicamente, sus filiales adquieren gran protagonismo como fuen te de competitividad para el conjunto de la multinacional. Bajo esta perspectiva, este artículo tiene un doble objetivo: (1) ofrecer una definición de filial ambidiestra y (2) explorar si las filiales son ambidiestras. Para ello se emplea una metodología cuantitativa sobre una muestra de 102 filiales españolas de multinacionales extranjeras de sectores intensivos en conocimiento. Los resulta dos muestran que las filiales analizadas son altamente exploradoras de conocimiento. Sin embargo, a pesar de la coherencia que existe entre los roles desempeñados y sus estrategias competitivas internacionales, no todas las filiales resultaron ser ambidiestras. Solo aquellas con roles de jugador integrado y estrategias “transnacionales” pueden considerarse como tales. Resumo Na sociedade do conhecimento, as multinacionais e, mais especificamente, suas subsidiárias adquirem grande destaque como fonte de competitividade para a multinacional como um todo. Nessa perspectiva, este artigo tem um duplo objetivo: oferecer uma definição de subsidiária ambidestra; e explorar se as subsidiarias são ambidestras. Para tanto, foi utilizada uma metodologia quantitativa em uma amostra de 102 subsidiárias espanholas de multinacionais estrangeiras de setores intensivos em conhecimento. Os resultados mostram que as subsidiárias analisadas são altamente exploradoras de conhecimento. No entanto, apesar da consistência que existe entre os papéis desempenhados e suas estratégias competitivas internacionais, nem todas as subsidiárias se revelaram ambidestras. Apenas aquelas com papéis de jogador integrado e estratégias "transnacionais"podem considerar-se como tais.

UTCC International Journal of Business and Economics, 12, 3, 89-108

Studies of corporate social responsibility (CSR) and stakeholder engagement have recently gained traction in the global strategy field. However, they have mostly developed as parallel streams, thereby limiting the cross-fertilization between global strategy research and stakeholder theory. We believe that because the CSR context in essence calls for the simultaneous participation of a large and heterogeneous set of local and global stakeholders, it requires a novel theorizing of multinational enterprises’ (MNEs’) worldwide practice implementation. Thus, we develop a series of propositions in the context of CSR to highlight the role stakeholders play in MNE subsidiaries’ implementation of initiatives, depending on the complex institutional pressures that they undergo, their distance from the parent’s home country, and their level of network embeddedness. We focus in particular on the role of stakeholder demands alignment in subsidiaries’ CSR implementation. Our conceptual propositions are enriched by the consideration of illustrative data on initiatives undertaken by Iberdrola from 2008 to 2014.

This study investigates the simultaneous influences of culture and global mindedness on the foreign subsidiaries of Brazilian multinationals (B rMNs). Because the ability to develop competences abroad is critical for emerging multina tionals competitiveness, we proposed hypotheses and tested a model for how the competenc es of subsidiaries may be affected by the dimensions of global mindedness and culture. To do so, we conducted a multilevel survey involving the headquarters and subsidiaries of majo r BrMNs. The results suggest that global mindedness, which encompasses global orientation, g lobal knowledge, and global skills, is positively related to the development of subsidiari es ́ competences. By contrast, cultural factors, including power distance and uncertainty a voidance, are negatively related to competences development. Therefore, these dimension s may exert simultaneous and opposing stimuli and unaligned forces that affect the develo pment of competences abroad, generating a “tug of war” effect.

The processes of capital flows liberalization, opening of markets, and globalization in the second half of the 20th century led to a sudden increase of investments in the form of foreign direct investments (FDI), accompanied by a growing number of transnational corporations (TNCs) as the main vehicles of foreign investments. Their strength, size and power increased over time, resulting in over 100,000 transnational corporations with over 900,000 subsidiaries all over the world, which made TNCs the foundation of the global economy. Given that the inflow of foreign capital plays a significant role in the financing of the Serbian economy, this paper analyzes the inevitable consequences that the presence of TNC subsidiaries has on employment, export competitiveness and balance of payments of the host country. TNC operations have dynamized the trade through the supply chain concept, thereby generating the need to form new banking instruments for the purpose of financing international trade at a reduced risk. This is how bank payment obligation was formed, which will also be discussed in this paper.

The current paper has focused on the foreign owned Czech banking sector and potential risks which has been nowadays more and more discussed within the context of past crises. A possible transformation of Czech subsidiaries, Czech banks, to the branch offices of their foreign parent companies in the near future will mean decrease of government's income from taxes that could affect the whole Czech economy. Aim of the current paper is to examine how negatively could change the role of Czech banks’ parent companies whose ownership can impact on the development of the government debt in the Czech Republic. In this study, it was found significant negative relationship between growth rates of the both, government debt and taxes from banks’ earnings. From results of this article it is made future implications for the monetary as well as fiscal policy.

This article aims to verify how multinational subsidiaries establish their networks in a host country. The literature addresses only networks formed between the subsidiary and its mother and sister companies. However, to consider the external network is essential, because the subsidiaries are not a mere receptor of knowledge from the headquarters, they develop their own capability for creating knowledge and innovation for the multinational. To examine the creation of these networks, this paper focuses on two subsidiaries located in Brazil belonging to a group that carries out R&D projects in partnership with several organizations in the country and creates research and development networks in their sector. To analyze the network characteristics, the authors used Ucinet and NetDraw software and found the following results: (a) geographic distance is a driver in establishing partnership among subsidiaries and executor organizations; (b) the majority of the relationships are tied between a company and a research organization, showing that theoretical knowledge and practical experience are considered by companies to develop and market project outcomes; and (c) although the subsidiaries belong to the same group, they do not have strong ties.

The existing corporate environmental disclosure (CED) research focuses primarily on large companies operating in a single jurisdiction, leaving a gap of knowledge regarding the subsidiary operations of multinational corporations. In this study, consolidated narrative interrogation (CONI) is used to quantify CEDs presented in annual and stand-alone sustainability reports published over a 15-year span between 2002 and 2016 by agrochemical companies operating in India. Results show that the diversity, the quantity, and the quality of CED vary significantly, but generally each of them has been improving over time&mdash, most notably following the revisions to the Companies Act in 2013. The study finds that the subsidiaries of multinational agrochemical corporations implemented CED practices more strongly associated with those of domestic companies than those found in the reports produced by their parent companies. The CED of both subsidiary and domestic companies appears to reflect concerns of local legitimacy.

We study subsidiaries of a MNC and research why they implement initiatives that deviate from organizational values of headquarters. Initially we relied only on the concept of institutional duality and expected that pressures in the institutional environment and values of headquarters explain the agency of the subsidiaries. But the results of our extensive participatory observation showed that the organizational values of subsidiaries (rather than those of headquarters) helped explain the subsidiaries’ actions. In conclusion, we find that there are limits to the predictive power of the concept of institutional duality. Our study shows that a distinction between values of headquarters and values of subsidiaries is necessary in order to understand the agency of subsidiaries. We suggest a concept of ‘institutional trinity’ that distinguishes between these two values as well as pressures in the institutional environment. Our research demonstrates that an MNC can benefit from a subsidiary that develops its own organizational values. If headquarters is subsequently ready to adopt some of these subsidiary values, it may be able to adapt more easily to a changing institutional environment., Management International Review, 54 (5), ISSN:0938-8249, ISSN:0025-181X, ISSN:1861-8901

This thesis investigates how the presence of foreign controlling shareholders relates to the performance and financial reporting quality of private subsidiaries. We analyze unique, hand-collected data consisting of a sample of more than 2,000 private Spanish companies controlled by either a local or a foreign group during the period 1997-2013. Overall, results suggest a negative effect of foreign direct investment on the host-country companies. In particular, foreign ownership is associated with a sales advantage, but the higher personnel costs make foreign group subsidiaries less profitable than their locally-owned counterparts. As far as accounting quality is concerned, foreign-owned companies are also inferior to those owned by local groups, since we find a higher prevalence of earnings management and a higher likelihood of receiving modified audit reports for lack of transparency in subsidiaries of foreign groups. In sum, foreign control does not enhance firm profitability nor financial reporting quality, but fosters opacity., Esta tesis analiza cómo la propiedad extranjera afecta al rendimiento y calidad de la información financiera de subsidiarias españolas no cotizadas durante el período 1997-2013. Los resultados sugieren un efecto negativo de la inversión directa extranjera en las empresas del país receptor. En particular, la propiedad extranjera está asociada con una ventaja en términos de ventas, pero los gastos de personal más altos hacen que las subsidiarias de grupos extranjeros sean menos rentables que sus homólogas de grupos locales. Respecto a la calidad de las cifras contables, las subsidiarias de grupos extranjeros también son inferiores a las controladas por grupos locales ya que encontramos mayor prevalencia del earnings management y mayor probabilidad de recibir informes de auditoría no limpios por falta de transparencia en las subsidiarias de grupos extranjeros. En conclusión, el control extranjero no mejora ni la rentabilidad ni la calidad de la información, sin embargo fomenta la opacidad.

We examine the impact of international and domestic technology transfers on firms' productivity performance in a sample of 448 Belgian innovating firms during 2003--2006. Technology transfers may occur through R&D contracting, purchase of licenses and know-how, purchase of specialized machinery, hiring of specialized personnel, and various informal channels. Estimates of a dynamic productivity model show that firms engaging in international knowledge transfer strategies record substantially and significantly higher productivity growth. While we do not find statistical evidence of complementarity between international and domestic transfers, the largest impact on productivity is found if firms combine international and domestic transfer strategies, suggesting that a diverse external technology sourcing strategy combining local know-how with know-how from abroad is most effective. Such combined domestic and international technology sourcing strategies are associated with firms' basic research orientation, R&D intensity, and the successful use of technology protection strategies to appropriate the benefits of innovation efforts. Foreign multinational firms are more likely to adopt technology transfer strategies solely focusing on international transfers. Multinational firms do not exhibit faster productivity growth if the effects of technology transfers and R&D are taken into account. Copyright 2013 The Author 2012. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved., Oxford University Press.

Previous studies often associated a specific type of ownership mode with the extent of control a parent firm may have over (strategic) decision-making in a foreign subsidiary, suggesting that parent firms should have higher control over wholly-owned subsidiaries (WoS) than international joint ventures (IJVs). Building on principal agent theory, we argue that in the Chinese context higher ownership levels do not necessarily have a positive effect on the extent of control over the foreign subsidiary. We further argue that cultural distance between the parent firm and the subsidiary moderates this relationship. We test our hypotheses using data from a sample of 156 foreign subsidiaries in the People’s Republic of China (PRC) and find strong support for our arguments. Our findings show that in WoS parent firms reduce their extent of control, while in IJVs parent firms increase their extent of control. Moreover, we find that extent of control over WoS (IJVs) declines (increases) when cultural distance increases. Our results have significant theoretical implications for international business (IB) research as they challenge existing views with regard to the relationship between ownership mode and control as well as the moderating effect of cultural distance.

This paper uses network approaches to subsidiary theory to investigate the performance impacts of interactions among the factors of autonomy, intra-organizational network relationships, and inter-organizational network relationships. The paper offers an analysis of both direct and indirect interactions among these factors. This study develops and extends existing research that uses network-based approaches in studies of subsidiary performance by considering the roles of autonomy and network relationships. In addition, the study examines changes in terms of increases in the interactions between the main factors rather than the levels of these factors. The examination of the interactions between increases in autonomy and networks and the subsequent impact of this change on performance contributes to a better understanding of subsidiary evolution. The results, which are based on data gathered from a survey of 350 foreign-owned subsidiaries in the UK, Germany, and Denmark, reveal complex interactions between increases in autonomy and network relationships, and the subsequent impact of these changes on performance. The results also highlight the central role of inter-organizational network relationships in the interaction between the factors, which produce significant and positive effects.

Na pesquisa exploratória aqui relatada, realizada em 2009 e guiada por uma extensa revisão bibliográfica e pelo emprego do método de estudo de caso, busca-se identificar congruências entre o posicionamento estratégico adotado pela subsidiária brasileira de uma corporação multinacional e o tipo de rede de negócios por ela integrada. Apoiando-se em dois modelos específicos da literatura acadêmica sobre os temas mencionados (posicionamento estratégico e redes), as conclusões dessa investigação sugerem que as Redes Verticais de Demanda e Fornecimento (MOLLER e RAJALA, 2007) são adequadas para operacionalizar o posicionamento definido como Melhor Produto no Modelo Delta (HAX e WILDE II, 1999; 2001). The aim of this exploratory research study conducted in 2009, guided by an extensive review of the bibliography and by use of the case study method, was to identify the congruent elements between the strategic positioning of the Brazilian subsidiary of a multinational and the business network of which it is a part. Based on two specific models found in the academic literature on the aforementioned themes (strategic positioning and networks), the conclusions of this paper suggest that Vertical Demand-Supply Networks (MOLLER and RAJALA, 2007) are suitable to implement the strategic positioning defined as Best Product in the Delta Model (HAX and WILDE II, 1999; 2001). En esta investigación exploratoria, realizada en 2009 y guiada por una extensa revisión bibliográfica y por el uso del método de estudio de caso, se tiene por objeto determinar la congruencia entre las posiciones estratégicas adoptadas por la filial brasileña de una empresa multinacional y el tipo de red de negocios que ésa integra. Con base en dos modelos específicos de la literatura académica sobre los temas mencionados (posicionamiento estratégico y redes), los resultados de esta investigación sugieren que las Redes Verticales de Demanda y Suministro (MOLLER y RAJALA, 2007) son adecuadas para operar el posicionamiento definido como Mejor Producto en el Modelo Delta (HAX y WILDE II, 1999; 2001).

OVERVIEW:Innovation subsidiaries increasingly follow manufacturing subsidiaries into emerging markets. Compared to well-established Western economies, emerging markets present unique challenges for the development of innovation management capabilities at subsidiaries. This paper distinguishes between implementer and innovator subsidiaries and provides suggestions on how to transform an implementer subsidiary to an innovator. This transformation may start as a strategic priority within the company and then be translated into specific actions. Suggestions for actions are based on the experience of a large multinational pharmaceutical company, Novo Nordisk. Lessons learned include assigning the subsidiary responsibility for a self-contained piece of work while maintaining a central R&D function, balancing local and in-company management, using local innovation talent, and educating new hires into the company culture.

This dissertation contains a qualitative case study research that takes an integrated facility services multinational as the setting, focusing on two services—catering and cleaning—in three subsidiaries—India, Spain and the UK. The author investigates and discovers how the types of knowledge tied to the services practice and characteristics of the subsidiaries and services such as their age, context and development are related to the knowledge transfer mechanisms these subsidiaries and services use. The dissertation contains also a research on the literature on organizational learning and knowledge management, to which she contributes with an indagation on the epistemological foundations of the main trends on these topics, a classification of types of knowledge, a taxonomy of service firms and a typology of knowledge transfer mechanisms. All these insights are used in the subsequent empirical research.

Emerging market multinational enterprises (EMNEs) are rapidly increasing their foreign direct investment around the world and, in particular, in the countries of Southern Europe. Although, international business scholars have been quick to put the spotlight on this new phenomenon, the cultural adaptation of EMNE subsidiaries to host-country environments, especially those of Europe, has remained largely unexamined. This question acquires particular relevance owing to the considerable cultural distance between emerging and developed economies and the isomorphic conflicts that can arise at the subsidiary level. Here, we examine this situation by reporting two case studies of Chinese subsidiaries operating in Spain. Our findings suggest that guanxi – the deep-rooted system of personal relations and social connections founded on mutual interests – plays a major role in the search for legitimacy undertaken by Chinese subsidiaries located in Southern Europe. The adoption and adaptation of Chinese cultural values and practices to the local environment allow the subsidiary to align itself with the culture of the parent organization at the same time as it embeds itself in the host environment, thus resolving any isomorphic conflicts.

This paper builds on Birkinshaw's model of multinational enterprise (MNE) as an internal market system [Birkinshaw, J. (2000). Entrepreneurship in the global firm. London: Sage]. This model addresses the issues related to the emergence of market-based mechanisms of coordination within the MNEs and the strategic decisions that affect internal competition. Birkinshaw argues that subsidiaries simultaneously participate in three different internal markets within an MNE: a market for intermediate goods and services, one for charters and another for competencies and practices. The goal of the paper is to expand Birkinshaw's concept of internal market and analyze the logic behind internal competition by considering more fully existing literature and developing an organizing framework to position such a model within that literature. There is specific focus on discussing how the internal market model relates to modern network-based configurations of the MNE. In addition, the study shows that factors affecting the extent to which each of the three internal markets is established can be better understood if we link such a model to the contributions developed by three mainstreams of research: internalization theory, resource-based view and organizational learning literature.

The aim of this contribution is to assess the impact of innovation policy on foreign subsidiaries' innovation performance. The South Korean government has implemented a series of policies to enhance the innovation capabilities of private firms, whether foreign or locally owned. With more FDI in the country, the position of foreign subsidiaries as main actors for innovation is important. Yet the specific role of South Korean innovation policies in facilitating and promoting innovation by foreign subsidiaries remains under-studied. Further, the literature suggests that a subsidiary's innovation activities depend upon its strategic mandate. This article's fundamental contribution, therefore, is to analyse the influence of innovation policies and strategic mandates on the innovation performance of foreign subsidiaries. Using data from the Korean Innovation Survey, a series of models are constructed explaining the innovation performance of 423 foreign firms in the Korean manufacturing sector. Results suggest that subsidiary innovation is primarily explained by its strategic role, and competence-creating subsidiaries demonstrate higher levels of innovation performance. Innovation policy is found to influence more positively less innovative firms. Two types of policy are found to have a significant effect, namely technical support and tax incentives. Asian Business & Management (2012) 11, 56-78. doi: 10.1057/abm.2011.27; published online 23 November 2011 Refereed/Peer-reviewed

Copyright © 2008 Clute Institute. Previous studies have explored the substantial benefits for companies and governments of exporting. Nevertheless the role of government has been analysed mainly trough export promotion programs and the importance of the subsidiaries of multinational companies to increment a country exports has not been tested together with other variables present in the literature on export performance. This research examines the export performance of companies in Europe. A sample of 239 companies in 12 countries was analysed and their level of exports was examined, using Logit and Tobit models. The contextual variables of the country of operations were combined with company characteristics, including dimension, age, and industry affiliation. The results show that foreign affiliation, age, country of operations and industry are important and that government efficiency is a key element to companies' propensity and intensity of export.

The article presents the initial proposal for the group risk measurement based on the comparison of two interconnected sets of webs. The risk scalar has been presented both for each separated subsidiary as well as for the group itself. It was shown the risk profile of the group could be aggregated into a single value, and some consequences of that attribute was discussed. The practical aspects of the proposed solution were outlined.

This article shows the relationship between the strategy of external growth carried out from 1921 to 1939 by the French company Alais, Froges et Camargue and the introduction of new management tools intended to control subsidiaries. The establishment of financial reporting in 1921 and the development in 1927 of a financial statement whose conceptual foundations were based on group accounting, were the solutions implemented by the directors to manage the Group's increasing complexity and impenetrability.

Uma parte importante da investigação existente sobre empresas multinacionais procura explicar por que e como a transferência de conhecimento, ou de tecnologia, ocorre dentro das multinacionais. A maioria dessa investigação trata as transferências num contexto que pressupõe a cooperação entre as subsidiárias geograficamente dispersas. Neste artigo, explicamos como nem sempre as subsidiárias cooperam e, pelo contrário, pelo menos às vezes, competem, e exploramos algumas implicações dessa diferença para que as transferências de conhecimento efetivamente ocorram. Ao examinar as relações de cooperação e de competição entre as subsidiárias de uma mesma multinacional, sugerimos que o sucesso da transferência de conhecimento depende do formato organizacional da empresa multinacional, do alinhamento entre a estratégia internacional e a estrutura organizacional, e do sistema de recompensas em prática. Na ausência destes, parece razoável sugerir que emerge uma competição multimercado entre as subsidiárias que é originada pela sobreposição na carteira de produtos, tecnologias e mercados das subsidiárias. An important part of the existing research on multinational enterprises (MNEs) seeks to explain why and how knowledge transfers occurs inside the MNEs. The majority of the research treats transfers in a context that assumes cooperation among geographically disperse subsidiaries. In this article we explain how subsidiaries may not always cooperate and, at least in some instances, they compete. We explore some implications of this difference for knowledge transfers to occur. Examining cooperative and competitive relations among subsidiaries of a parent MNE, we suggest that the success of the knowledge transfer depends on the organizational structure, the adjustment between the international strategy and the structure and the reward systems. In the absence of these, it seems reasonable to suggest that multimarket competition emerges among subsidiaries, originated by an overlap on the subsidiaries' products, technologies and market portfolios. Una parte importante de la investigación existente sobre empresas multinacionales intenda explicar porqué y cómo la transferencia de conocimiento -o de tecnología- ocurre dentro de las multinacionales. La mayoría de esas investigaciones trata las transferencias en un contexto que presupone la cooperación entre las subsidiarias geográficamente dispersas. En este artículo, explicamos cómo no siempre las subsidiarias cooperan, al contrario, a veces compiten, y exploramos algunas implicaciones de esa diferencia para que las transferencias de conocimiento efectivamente ocurran. Al examinar las relaciones de cooperación y de competición entre las subsidiarias de una misma multinacional, sugerimos que el éxito de la transferencia de conocimiento depende del formato organizacional de la empresa multinacional, del alineamiento entre la estrategia internacional y la estructura organizacional, y del sistema de recompensas en práctica. Ante la ausencia de estos, parece razonable sugerir que emerge una competición multimercado entre las subsidiarias, que es originada por la superposición en la cartera de productos, tecnologías y mercados de las subsidiarias.

Using 1972 firm-year observations of Belgian subsidiaries, I examine whether the previously documented better performance of family firms can be attributed to the more efficient divestiture decision in these firms. The results reveal that families holding large blocks of shares engage in more restructuring activity. Also, when the founder is present in the family firm, when the chairman of the board belongs to the family or when the function of CEO and chairman is not occupied by the same person, the likelihood of a voluntary restructuring will be higher. The results thus confirm the hypothesis that their voluntary restructuring decisions cause their better performance. ispartof: Global Perspectives on Family Business Developments ispartof: IFERA location:Cyprus, Limassol date:24 Jun - 27 Jun 2009 status: published

Using a matched-pairs methodology, I compare the impact of two different types of blockholders on the performance of the firms they control. The results reveal that independent family firms perform better than similar subsidiaries of Belgian financial holding companies over a 14-year period. Even when ultimate ownership is controlled for, the results still hold. Family-owned firms will also prefer labor intensive production to avoid the loss of control. In sum, families seem to have capabilities that are not easily replicated by other blockholders.

(VF)Parmi les formes d’internationalisation des activités de R&D, les multinationales peuvent opter pour la localisation de ces activités au sein de leurs filiales à part entière. Si ce choix peut procurer de nombreux avantages, liés notamment à l’internalisation des fonctions stratégiques, il suscite des interrogations d’ordre organisationnel. La décentralisation de la R&D peut accentuer les divergences entre les intérêts de la maison-mère et les responsables nommés à la tête de ces filiales. Des mécanismes particuliers de contrôle et d’incitation devraient être mis en place pour réussir cette forme d’investissement.(VA)Among the forms of internationalization of R&D activities, multinationals can opt to locate these activities within their wholly owned subsidiaries. Although such a choice can provide many advantages, notably in relation to the internalization of strategic functions, it raises questions of an organizational nature. Decentralization of R&D can emphasize the differences between the parent company’s interests and the managers appointed to run the subsidiaries. Specific control and incentive mechanisms should be put into place for this form of investment to be successful.

The tension that multinational companies (MNCs) suffer in the transfer of their HR policies and practices leads us to take an in-depth look at the factors that affect this transfer. We divide the transfer process into five phases, ranging from the configuration of HR policies and practices in the parent company to their internalization by the subsidiaries' employees, and we analyze this process from six theoretical approaches, presenting the corresponding work hypotheses which will bring about the model of analysis.

[Resumen] Una cuestión que atribula a los juristas en el derecho comparado es la responsabilidad de la sociedad dominante por las obligaciones de la sociedad dominada en situación de quiebra. Desde hace unos treinta años la doctrina y los tribunales aceptan o rechazan tales demandas de los acreedores y de los síndicos concursales. En este estudio el autor aborda las causas de tales temperamentos positivos o negativos en el derechos de los Estados Unidos desde una óptica del derecho comparado. Sobre el tema existen dos líneas de pensamiento antagónicas: la del “Entity Law”, o derecho entitativo, propio del tradicional derecho de sociedades aisladas, que suele rechazar esas demandas afirmando el carácter separado de las entidades corporativas en juego. La otra línea es la del llamado “Enterprise Law” o derecho empresarial propio de los grupos de sociedades, que considera en su conjunto los dos elementos que lo integran: una relación de control o dominación y una política empresarial unificada, en los campos propios del sector empresarial: política general, finanzas, factor humano, control, contabilidad, producción y márketing. Desde el derecho norteamericano analizado se observa una tendencia hacia el nuevo derecho empresarial de los grupos de sociedades. Los ámbitos jurídicos en los que especialmente se observa esta tendencia son: la subordinación de créditos intragrupo, la consolidación material de activos y pasivos y, en menor medida, la responsabilidad. Para el autor estas soluciones son mejores y más adecuadas que la de la extensión de quiebra y la doctrina del levantamiento del velo societario, para el caso de los grupos de sociedades. Países como Estados Unidos (donde existen unas 500 sentencias sobre el tema) van por delante de otros países del sistema continental europeo, que pueden servir de modelo para futuras reformas legislativas. [Abstract] An issue that has troubled banking lawyers is the liability of parent companies in respect of insolvent subsidiaries. In more and more cases, the subsidiaries are part of a corporate grouping. Indeed, in recent years, there has been a change in the structure and conduct of large business corporations which brings into question the validity of those legal concepts derived from a world of much smaller and more simply organized corporate structures that are not members of a corporate group. In this article the author considers the American law in respect of the liability of the parent company on the insolvency of its subsidiary. There is a clash in legal doctrine between “Entity Law”, which for almost all purposes treats each corporation as a separate legal entity with its own legal responsibilities, and “Enterprise Law”, which recognizes that companies in a modern commercial environment are nowadays a constituent part of a corporate group conducting an integrated enterprise. The approach of the American courts is to act as courts of equity in bankruptcy with the overriding objective of achieving equality of distribution and fairness for creditors. US case law is examined where it is seen that, increasingly, “Entreprise Law” has been applied to transactions involving “insiders” and “Entity Law” has been abandoned in order to achieve the goals of equality of distribution and fairness to creditors. Liability of a parent for obligations of an insolvent subsidiary strikes directly at limited liability. It is argued, on the basis of an examination of US case law and statutes, that equitable subordination and liability issues provide appropriates legal responses for the application of “Enterprise Law”, as distinct from the extension of the bankruptcy state or procedures from one company to another, within a corporate group. The doctrine of piercing the corporate veil is an acceptable solution, but “Enterprise Law” has broader avenues for better solutions for the debts of insolvent companies pertaining to a group.

Equity ties between businesses change the division of the firms’ joint profits, thereby affecting incentives for relation-specific investments and other strategic actions. Depending on which side owns the equity and how readily the equity can be resold, we find that the changed incentives can resolve all four types of holdup-related problems: underinvestment, overinvestment, undercooperation, and sabotage. Equity stakes indirectly affect bargaining over the joint profits by making the bargaining positions of the firms dependent on each other. For instance, if one firm is made unprofitable by a breakdown in negotiations, the other firm loses as well. Since bargaining positions are linked, each firm benefits less from attempts to grab a larger share of the joint profits by strengthening its relative bargaining position, and benefits more from actions that increase joint profits. While both firms can gain from increased efficiency due to the equity stake, firms in many cases should only acquire an equity stake if they can bargain for a discounted price.

A common understanding in recent literature on the development of multinational corporations (MNCs) and headquarters-subsidiary relations is that some subsidiaries will have, or ought to have, a strategic role in the global organization that reaches beyond their local undertakings. This notion implies that MNC competitive advantage depends on the ability of several corporate units to assimilate and make use of knowledge created in other business contexts than their own. Hence, an MNC subsidiary must adapt and commit to the local environment in order to survive in the market competition. On the other hand, corporate sister units’ usage of subsidiary knowledge implies that the subsidiary also must adapt and commit within the corporate environment. The dilemma here lies in the extent to which the subsidiary’s external market environment and its corporate environment are separated (or integrated) systems in terms of connections between resources and activities and knowledge development. In this paper, we will reveal empirical findings from an international project on the occurrence of strategic subsidiaries - denoted Centres of Excellence (CoE) - in MNCs. We also investigate if CoEs play an influential role over corporate decisions on investments. Our investigation reflects the extent to which the subsidiary competencies are of context-specific nature or if they affect other parts of the MNC. The paper also discusses and presents case-examples of how the subsidiary can retain its uniqueness and sustain as a CoE even if it continues to transfer knowledge to other parts of the MNC.

Foreign subsidiaries acting as "integrated competence centres" is an organizational design that improves the building of capabilities in multinational corporations. In this knowledge-creating process the headquarter uses a bottom-to-top strategy, where the initial competence-building starts in independent and autonomous subsidiaries, exploiting their internal learning processes and relations to local advanced customers and science centres. The purpose of the subsidiary is to develop basic designs of future competitive products. The headquarter assigns mandates and resources for further development of the competence so it qualifies for global sales exploitation. After gaining a mandate the subsidiary concentrates its R&D within a focused area. Central monitoring systems and corporate socialization mechanisms secure the possibility of intra-organizational integration and utilization of competences. Further, knowledge transfers within the corporation help the competence centre with its product development. A case study of two foreign-owned Danish high technology subsidiaries test the approach. Both companies build up competence in focus areas, and use intra-organisational instruments to integrate knowledge. However, they differ in their historical background and how they gain the mandate for further competence development.

There has been a growing interest in looking upon the MNC as a differentiated network in the sense that subsidiaries have access to different types of resources and therefore perform differently in its market-place and within the MNC. Yet, even though subsidiaries are the object of intense interests, remarkably little have been written about assessment of subsidiary performance. In short, the possibilities of subsidiaries seem to generate more attention in the literature than their results. The two distinctive features of this paper lie in the development of the concept of subsidiary performance and the exploration of the linkage between subsidiary embeddedness and performance. More specifically, by drawing on literature about organizational learning, absorptive capacity and embeddedness in business relationships, some hypotheses will be formulated about the casual link between subsidiary environment and subsidiary performance. The hypotheses are tested in an LISREL-model based on data of 98 subsidiaries belonging to Swedish multinationals.

El presente trabajo tiene como objetivo esencial el análisis de la presencia en países extranjeros de los bancos españoles. El sector financiero es uno de los sectores más globales. Algunos de los bancos españoles se encuentran las empresas de país más internacionales con filiales en más de una decena de países. Realizamos un análisis descriptivo, que nos permitirá ofrecer una visión panorámica antes de abordar una investigación estadísticamente más rigurosa. El estudio abarca el periodo 1982-1996, utilizando como fuente de información fundamental el Anuario estadístico de la Banca Privada (AEB). Los principales resultados son los siguientes: en primer lugar, se ha producido un proceso de reestructuración de las sucursales y oficinas existentes en el extranjero en parte por sustitución de las segundas por las primeras y en parte por el proceso de concentración del sector bancario. En segundo lugar, los principales destinos de los bancos son los países de la Unión Europea y Sudamérica. Por último, hemos encontrado cierta correlación la localización de los establecimientos y los destinos de las DE del resto de empresas españolas (no financieras). The main aim of this paper is to analyze tha presence of spanish banks in foreign The financial is one of the most global sector. Some spanish banks are among the spanish more international firms, with subsidiaries and banking offices in more than ten countries. This work shows a descriptive analysis, that it Will allow us to provide a panoramic view of spanish multinational banking before the begining of a more complex and statistically robusted research. The study goes from 1982 to 1996, using the Statistic Report of Private Banking as the main data source. The principal conclusions are the following: first, it has been a reestructuration process of foreign banking offices; second, the main nations in wich spanish banks have their offices are the European Union and Southamérica; finally, we have found a high correlafion between the localization of foreign banking offices and the Foreign Direct Investment (FDI) of industrial spanish firms.

Dans les grandes firmes industrielles, des procédures sont mises en place pour contrôler l'investissement. Celles qui s'appliquent aux divisions et aux filiales à 100 % sont étudiées. Nous analysons les liens entre d'une part, l'autonomie en matière d'investissement des responsables d'unités et d'autre part, les caractéristiques de leur unité, de la firme et leurs caractéristiques propres. Ensuite, nous examinons la question du choix du statut juridique de l'unité (division ou filiale à 100 %), par rapport au contrôle des dépenses d'investissement des unités. Nous testons nos hypothèses sur un échantillon de près de 200 unités appartenant à 104 firmes industrielles.

The increasing trend of globalization and environmental challenges make the understanding of sustainability issues in international business a growing challenge throughout the world. This study illustrates the challenge ofan organization as it becomes larger and more diverse to keep the core values alive. We focused on a multinational with more than 30 years experience with sustainability issues. It is one of the worlds’ top manufacturers of renewable energy equipment. We found an extreme diversity in understanding sustainability.This exploratory study is based on a very broad sample within one company and it created new empirical insights enhancing the understanding of the sustainability theme in international business by creating a framework for describing patterns of sustainability understandings among international business units. This framework is useable by management to describe, explore and trigger new ways of thinking and to facilitate corporate culture change through coordination and configuration of the system of values and beliefs regarding sustainability among employees in the company.

The courts have developed two tests for determining the proper judicial districts in which corporate defendants in antitrust suits may be sued under section 12 of the Clayton Act. The United States Court of Appeals for the Seventh Circuit applied the less restrictive test in holding that the parent corporation was "transacting business" in the local district through the activities of its subsidiary. The author agrees with the court's application of a totality-of-circumstances analysis in finding that venue was proper but criticizes the court for not having taken the opportunity to inter the more restrictive test.

According with Peter Buckley, Business history provides sources of testing for international business theory such as internalisation theory; the eclectic paradigm; the Uppasla internationalization process model; the evolutionary theory of the firm; and the resource-based view of the firm. For its part, Mira Wilkins has highlighted that an important contribution of business historians is to instil a recognition of complexity business enterprises as they emerge and mature, as managers and managerial directions change, and as the environment in which managers operate takes on different characteristics. As Julian Birkinshaw explains, in doing so MNEs can be used as the primary unit of analysis, considering that the MNE subsidiary has its own strategy and make effective use of its far-flung network. By using a Business History approach, the aim of this article is to study how Renault entered in Spain, Italy and Portugal, and how it has evolved its presence through time. This article shows that the development path of Renault subsidiaries in Southern Europe not only it has been determined in the headquarters of the MNEs, but also in subsidiaries own development of its organizational capabilities.

We investigate the impact of global and local crises on bank stability and examine the effect of owning bank subsidiaries in other countries. We consider banks from MENA countries which experienced both types of crises during our sample period. Our findings highlight a negative impact of the global financial crisis of 2007-2008 on bank stability but, on the whole, no negative impact of the 'Arab Spring'. A deeper investigation shows that owning subsidiaries outside the home country is a source of increased fragility during normal times, yet a source of higher stability during the 'Arab Spring' but not during the global financial crisis. Moreover, owning foreign subsidiaries in one or two world regions is insufficient to neutralize the 'Arab Spring' crisis, while being present in three or more regions is more stabilizing during the 'Arab Spring' but also more destabilizing during the global financial crisis. Our findings contribute to the literature examining bank stability and have several policy implications. (T. Al Raheb). c Email: amine.tarazi@unilim.fr (A. Tarazi) 2 Local Versus International Crises, Foreign Subsidiaries and Bank Stability: Evidence from the MENA Region. Abstract We investigate the impact of global and local crises on bank stability and examine the effect of owning bank subsidiaries in other countries. We consider banks from MENA countries which experienced both types of crises during our sample period. Our findings highlight a negative impact of the global financial crisis of 2007-2008 on bank stability but, on the whole, no negative impact of the 'Arab Spring'. A deeper investigation shows that owning subsidiaries outside the home country is a source of increased fragility during normal times, yet a source of higher stability during the 'Arab Spring' but not during the global financial crisis. Moreover, owning foreign subsidiaries in one or two world regions is insufficient to neutralize the 'Arab Spring' crisis, while being present in three or more regions is more stabilizing during the 'Arab Spring' but also more destabilizing during the global financial crisis. Our findings contribute to the literature examining bank stability and have several policy implications.