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The central research question investigated herein involves why and how multinational firms implement various instruments and mechanisms to maintain control over their subsidiaries in China. During 2005–2007, the authors interviewed expatriate managers in charge of 12 French and 10 Japanese subsidiaries in China. The interviews show that multinational companies base their subsidiary control policy on four main control dimensions: the share of capital, expatriation, the training of local employees and the formalization of the organizational structure. A thematic content analysis of the 22 interviews provides deeper insight into the way, and the reasons why, multinational companies implement these four control dimensions. Since the subject companies all sell globally, this study also considers the effects of the global economic crisis of 2008–2009 on their control policies. Specifically, in early 2010, a sample of expatriate managers commented on the impact of the global economic crisis on their activities in the Asia-Pacific region, as well as on the corporate implementation of the four control dimensions. [ABSTRACT FROM PUBLISHER]

Purpose – The purpose of this paper is to explore the relationships between the strategic development of subsidiaries and the likelihood of subsidiaries exporting on an intra-regional basis to European markets. Design/methodology/approach – The paper defines the strategic development of subsidiaries as increases in autonomy, embeddedness in host locations and use of networks and host country sourcing. The location of subsidiaries in industrial clusters is also considered. Use is made of multinomial probit analysis of a survey of 391 UK-based subsidiaries to identify the relationships between the strategic development of subsidiaries and supplying European markets. Findings – The study finds some evidence that there are links between increasing networks and supplying European markets, but there is no evidence that developing host country sourcing is associated with European supply. Location in an industrial cluster is consistently associated with supplying European markets, and autonomy also appears to be closely associated with supplying European markets. Research limitations/implications – Extension of the research is required to other regional trade blocs such as Mercosur and North American Free Trade Agreement. The role of networks and the links to location in industrial clusters require further exploration, and future research needs to include the services and knowledge-intensive sectors. Originality/value – The paper adds to the understanding of subsidiary development in the context of intra-regional trading and thereby expands the literature on the regional strategy of multinationals. It highlights the importance of different types of autonomy for encouraging intra-regional trade by foreign-owned subsidiaries, and the central role of location in industrial clusters. [ABSTRACT FROM AUTHOR]

The quality and number of innovations developed by multinational companies from emerging countries is increasing dramatically. In particular, frugal innovations-- "good-enough, " affordable products that meet the needs of resource-constrained consumers--have created tremendous demand in emerging markets. While the development of such products has largely been the domain of local corporations in emerging countries, Western corporations have recently started to engage in frugal innovation as well. This is a difficult task for Western firms, however, because their business models and organizational structures are traditionally designed for the development of advanced products for the affluent few at the top of the economic pyramid. Using Swiss weighing-instrument manufacturer Mettler Toledo as a case example, this article suggests that frugal innovations are largely developed by local R&D subsidiaries of Western firms in emerging countries. A substantial degree of autonomy for those local R&D subsidiaries, including product-portfolio responsibilities, can facilitate the development of frugal innovation. [ABSTRACT FROM PUBLISHER]

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. [ABSTRACT FROM PUBLISHER]

Purpose – The purpose of this paper is to explore organizational factors that affect the transfer of subsidiary knowledge to both parent companies and peer subsidiaries.Design/methodology/approach – The hypotheses are tested using multivariate regression, based on a survey of 81 foreign subsidiaries in South Korea.Findings – The findings show that organizational factors that affect the transfer of subsidiary knowledge differ according to whether the recipient is the parent or the peer subsidiary. Subsidiary-to-parent knowledge flow is facilitated by establishing efficient formal mechanisms such as an expatriation policy, a subsidiary performance evaluation system, etc., whereas knowledge transfer to peer subsidiaries is enhanced by the length of a subsidiary's operation period and the frequency of its managers' communications with other managers in peer subsidiaries.Practical implications – This analysis suggests that managers of multinational companies should apply different approaches in managing these two distinct knowledge flow patterns in the MNC network.Originality/value – This study offers new insights into the challenges of global learning by highlighting the difficulty of transferring subsidiary knowledge to peer subsidiaries through formal organizational apparatuses. [ABSTRACT FROM AUTHOR]

Purpose -- The purpose of this paper is to discuss the questions arising from the use of discounted cash flow (DCF) method in the context of the valuation of a Portuguese subsidiary of a German firm. The process ended up in courts. Expert valuation was called. Two points are of particular relevance. First, given the past performance of the company and the external environment it faced, what would be a reasonable growth rate for free cash flow in the residual value period. Second, what questions arise form the assumption of seeing the subsidiary as a going concern, given that the German parent company had been opening new factories in India, China, Romania and Slovakia, and its presence in Portugal was far from guaranteed. Design/methodology/approach -- The paper is based on case study which rests on a real legal and financial business situation. The case is used to illustrate the conceptual questions related to the use of the DCF method in valuing closely held firms, particularly the very significant impact of terminal value in the process of equity valuation. Findings -- It was found that very small variations in the growth rate assumed for the residual value period make a great difference in share valuation. Thus, the work of experts had to be very finely balanced, and the judge, when deciding on the fair value to be paid to the plaintiff based on expert opinion, should give careful consideration to scenarios. Practical implications -- A relevant point of the paper is to highlight the effect on business valuation of potential growth rates forecasted for the perpetual growth phase. That rate is, in this case influenced by eventual location changes that can result from globalization of industrial activity. Portuguese shareholders in foreign controlled joint ventures, and all the other stakeholders are facing important challenges from a new world economic order, and this case clearly illustrates some characteristics of this trend. Originality/value -- The paper is useful for managers that deal with business valuation cases that end in courts, by highlighting cash flow based methods and its central assumptions, and exploring critical areas that influence the final outcome of a lawsuit that is based on differences of hypothesis used in financial forecasting. [ABSTRACT FROM AUTHOR]

Copyright of Revista de Administração e Inovação (RAI) is the property of Revista de Administracao e Inovacao- RAI and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Purpose – The purpose of this paper is to explore how the proportion of skilled jobs in subsidiaries is influenced by resource gaps created by subsidiary development. Design/methodology/approach – This paper develops a range of propositions that connect the constructs of effective autonomy and organisational relationships with subsidiary employment. Propositions are built on an extensive literature review based on such approaches as the resource-based view, transaction cost economics, network approach, and institutional theory. Findings – The framework developed in the paper suggests that a higher proportion of employment in skilled jobs in subsidiaries is most likely in cases where subsidiary entrepreneurship, role specialization, and absorptive capacity are higher. Conversely, the proportion is likely to be lower in cases of increased institutional distance from the parent company. Practical implications – The conceptual model can help parent company managers assess the likely effects of developments in effective autonomy and organisational relationships in their subsidiaries. Subsidiary managers can assess the possible impact of such factors as development of entrepreneurial activities, specialization within the multinational corporation supply chain and enhancement of absorptive capacity on the proportion of skilled jobs. Originality/value – This paper is the first to describe subsidiary development from a skilled job perspective. It further develops the concept of autonomy and introduces the term "effective autonomy". [ABSTRACT FROM AUTHOR]

Purpose – This paper aims to provide a synthetic review of the empirical literature on the multinational enterprise (MNE), subsidiaries and performance. Design/methodology/approach – The paper examines the following: the theoretical and conceptual foundation of multinationality (M) and performance (P) measures; the impact of MNE strategic investment motives on performance; the influence of contextual external and internal environment factors on performance; the strategy to optimize value chain activities of the MNE by cooperating with external partners in an asymmetric network, the key drivers of enhanced shareholder value and the implications of performance; and the need to access primary data provided by firms and managers themselves when analyzing the internal functioning of the MNE and its subsidiaries. Findings – The overall message from this literature review is that empirical research should be designed on the basis of relevant theoretical and conceptual foundations of the performance construct. Originality/value – The paper provides a systematic and synthetic review of theoretical and empirical literature. [ABSTRACT FROM AUTHOR]

Purpose – As subsidiary power has received relatively little attention in existing research, this paper aims to enhance the understanding of genuine sources of subsidiary power and how they work in headquarters-subsidiary relationships. Design/methodology/approach – The paper is based on a review of the relevant literature and four illustrative case studies, which are written on the basis of secondary sources. Each case was selected because it adequately represents a particular type of power. This allows for cross-case comparisons of the strengths and sustainability of different types of power, and facilitates the exploration of the application of subsidiary power in headquarters-subsidiary relationships. Findings – Four genuine types of subsidiary power are identified. One of these – micro-political bargaining power – plays a subtle but crucial role, as it is important in the enactment of the three other types of power, i.e. systemic, resource-dependency, and institutional. Practical implications – As headquarters have unlimited access to formal power, subsidiaries find it necessary to constantly apply micro-political bargaining power. The empirical material suggests that the effectiveness of micro-political bargaining power for subsidiary actors is based on two factors: information retrieval from headquarters and the leveraging of such information in issue-selling or conflict-handling processes. Originality/value – The paper contributes by theoretically delineating genuine types of subsidiary power and by illustrating the strength, sustainability and interaction of these types of power in headquarters-subsidiary relationships. [ABSTRACT FROM AUTHOR]

Purpose – Numerous studies have proliferated on the salient role of the subsidiary in multinational enterprise learning and innovative capability building. However, this role has not been considered outside the structural properties of the transnational or integrated network configuration. This paper aims to highlight the role of agency in learning beyond effective configurations. Design/methodology/approach – The research is based on case studies that systematically compare the ways in which parent company knowledge embedded in a transnational and an international structure is transferred to subsidiaries in the European chemical industry. Findings – The paper demonstrates that an international structure can also promote higher levels of learning, despite the absence of learning-facilitating structural properties, when subsidiaries' orientation to enact acquired knowledge or their "effortful accomplishments" are considered. Practical implications – The findings point to the significance of agency or adaptation to contexts that require either idiosyncratic or ongoing changes, where structural properties of a multinational enterprise are not conducive to higher levels of learning. In the absence of these structural properties, employees need to be guided to change their recognisable pattern of interdependent actions. Originality/value – The learning implications of Bartlett and Ghoshal's MNE structures are fine-tuned with the conceptualization of learning as practice. By adopting an agency-based understanding of learning, the two aspects of learning are reconciled, i.e. knowledge transfer and the actor's orientation to acquired knowledge for a more refined understanding of the concept within the MNE context. [ABSTRACT FROM AUTHOR]

This study analyzes the adaptation versus standardization dilemma in International Marketing in subsidiaries of multinationals corporations. It highlights the importance of GMS - global marketing strategies - in the ability to innovate in subsidiaries in emerging economies, as Brazil. The objective is to find out how the level of autonomy displayed by subsidiaries influences the adaptation vs. standardization dilemma, and, consequently, the marketing-mix program. The methodology followed is qualitative research using a case-study approach in an American multinational from the food sector. In this case, we found out that firm's brands are very important to this firm's success overseas, which sustains that brand policies should be defined carefully at both levels: subsidiaries and headquarters. This brand policy influences direct the autonomy to innovate in marketing at subsidiaries level. This study is useful for managers at subsidiaries who need to understand the importance of global marketing strategies, and also for managers at headquarters who need to verify in which circumstances autonomy pays off. [ABSTRACT FROM AUTHOR]

Purpose - Building on social identity theory, the purpose of this paper is to present a study on the socio-cultural integration process in amerger of two European pharmaceutical subsidiaries inMexico.The paper investigates antecedents of perceived threat to pre-merger identities in an officially claimed "merger-of-equals". Design/methodology/approach - A mixed-methods approach was adopted comprising semi-structured interviews (with 37 interview partners) and standardized employee surveys with 890 respondents. Findings - Findings indicate that identity of the new organization was largely shared among members of the different subgroups. Though the employees considered their pre-merger identities to be at stake (as demonstrated through the interviews), this experienced threat was not very strongly expressed in the survey. In fact, the sub-groups were able to maintain distinctiveness, acknowledge the value added of each group, and had access to resources. Research limitations/implications - The main study limitation concerns the fact that this research was conducted using a cross-sectional design. It would be interesting in future research to observe the processes as they unfold over time. Practical implications - The paper's findings may help managers and change agents to understand that within merger partners, subgroups exist and different concerns in terms of their identity may emerge. Originality/value - The results shed light on how shared identity in the new organization can successfully develop despite different perceptions of the integration process of members from the acquired and the acquiring groups. In contrast to past research findings on M&As, positive results were achieved despite contradictory perceptions of integration process of members of the acquired and the acquiring groups. [ABSTRACT FROM AUTHOR]

Purpose - The purpose of this paper is to investigate the strategic role evolution of client-following local subsidiaries of foreign automotive parts suppliers in China. Design/methodology/approach - The units of analysis are five local subsidiaries of foreign automotive parts suppliers dealing with Beijing Hyundai Motor Corporation in China; a case study methodology based on interviews with managers of the subsidiaries was employed. Findings - First, a modified version of Ferdows's model can be utilized to aptly analyze the strategic role changes of subsidiaries of foreign automotive parts suppliers which have followed their major client into the emerging market. Second, the development of a subsidiary's functional capabilities varies from subsidiary to subsidiary, depending on the headquarters' (HQ) global strategy and the nature of its interactions with external players. Third, the strategic role evolution of a subsidiary is critically influenced by the levels of its functional capabilities. Finally, the mechanism for a subsidiary's strategic role evolution can be explained by the interactions of three critical factors: the task assigned by HQ, the subsidiary's choice, and the local environment. Research limitations/implications - The external validity of this case study is yet to be verified and the possible gaps in perceptions between the subsidiary and the HQ have not yet been addressed. This is the first case study to address the strategic role evolution of client-following subsidiaries of automotive parts suppliers. Practical implications - This study presents the HQ with a framework for role assignments and a checklist for planning the development of a subsidiary's capabilities. Originality/value - This is the first paper to investigate the strategic role evolution of local subsidiaries of foreign automotive parts suppliers in the emerging market, and it finds critical factors affecting capability development, which in turn shape the subsidiary's process of role evolution. [ABSTRACT FROM AUTHOR]

ording to prior literature, risk determines the international strategies firms adopt, together with cultural and geographical distance. However, the effect of distance, whether cultural or geographical, remains insufficiently tested and seemingly contradictory. To investigate the potential determinants of international firm strategies, this study draws a sample of 759 Japanese subsidiaries worldwide. Statistical analyses confirm the ambiguous effect of distance (cultural and geographical) on internationalization strategies, especially compared with the effect of risk. [ABSTRACT FROM AUTHOR]

• This paper focuses on captive offshoring of new product development (NPD), i.e., relocating projects or project phases to foreign-based, wholly-owned, multinational corporation (MNc) subsidiaries (captive offshore units) to benefit from cost and efficiency advantages and/or from access to complementary technological resources and capabilities. • adopting a host country perspective, we theorize why different forms of local collaboration may complement or conflict with efficiency-seeking or arbitrage strategies and may thus influence why captive offshore units receive new product development orders from other MNC units located abroad. • Using a sample from Brazil and applying structural equation modeling with partial least squares (PLS), we find that local NPD outsourcing constitutes a complementary relationship, while local cooperation with clients creates a trade-off relationship with captive offshoring. that these relationships are moderated by the captive offshore unit's cost position within the MNc suggests that arbitrage effects transcend the headquarter-subsidiary relationship into the sphere of MNc subsidiaries' local collaborations. • Our findings imply that arbitrage in multinational contexts affects the interdependence between resources and transaction costs. [ABSTRACT FROM AUTHOR]

An outline of major developments in Malta over the past two decades shows that the next major challenge in the investment services space is attracting custodians to Malta. Custodians are a critical factor in the island's offering, especially in relation to UCITS. The author outlines the two options of a branch or a subsidiary and identifies the benefits and disadvantages of each option from a Maltese law perspective. [ABSTRACT FROM AUTHOR]

Purpose -- This paper seeks to explore the personal motives of subsidiary CEOs in taking initiatives in multinational corporations. In essence, the paper proposes that subsidiary initiative-taking is strongly driven by the socio-political positioning of subsidiary CEOs, which consists of specific "social aspects" that account for the basic orientation that subsidiary CEOs maintain in initiative-taking, as well as "political aspects" that affect the ability of subsidiary CEOs to strategize and the ways they do it in the highly politicized processes of initiative-taking. Design/methodology/approach -- The paper is based on four exploratory case studies undertaken in German subsidiaries in France. Applying a matched pair approach it compares two subsidiaries run by parent country nationals (PCNs) with two subsidiaries run by host country nationals (HCNs). Findings -- The paper demonstrates that the nationality of the subsidiary CEO alone does not explain subsidiary CEOs initiative-taking behaviour. Other factors that make up the socio-political positioning of subsidiary CEOs, such as career aspiration, career orientation, access to resources and specific skills to form internal and local coalitions, as well as "external" coalitions with the headquarters, need to be considered as well. Research limitations/implications -- Given the qualitative research design and exploratory nature of the study there are limits to how far the findings can be generalized and applied elsewhere. More in-depth research is needed to further develop the socio-political perspective put forward here, especially to more closely analyze the interplay of actors' (CEOs') socio-political positioning approaches within different contexts of subsidiary initiative-taking. Originality/value -- The socio-political perspective proposed here goes beyond and extends existing IRHM approaches, which narrowly focus on the overarching impact of nationality as a predictor of differences in the behaviour of subsidiary CEOs. [ABSTRACT FROM AUTHOR]

Copyright of Revista de Administração is the property of Instituto de Administracao da FEA-USP and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The purpose of this paper is to extent internationalization theories by investigating the potential moderating impact of three common foreign direct investment (FDI) characteristics (years of operation, size and role) on the market orientation of MNE subsidiaries located in Greece. By developing hypotheses based on existing literature, our findings indicate that market-seeking FDI and import substitution strategies correlate with an increased importance for the focal, and those markets which are characterized by geographical proximity and similar structural elements (Balkan countries). Strategic-seeking FDI and subsidiaries' mandate to extent MNEs' original product line mainly targets at supplying integrated economic areas (EU) and global markets. Subsidiaries which are relatively smaller and more recently established tend to focus on more geographically dispersed markets. In the main, the results meet our expectations for a middle-income peripheral European economy, where foreign operations show strong elements of static and immediate competitiveness, but also emerging potentials to upgrade their roles into more sophisticated regional representatives of their respective network. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to advance understanding of the context and essence of foreign investments in an intermediate-level economy and to revitalize the discussion on the differentiated strategic roles of subsidiaries within the multinational enterprise (MNE) network. Design/methodology/approach – A unique questionnaire-based survey – including 112 usable responses – was carried out. The role of subsidiaries is categorized according to their market and value-added scope. Pair-wise analysis has identified six roles for foreign operations (local servers, advanced replicas, regional operators, regional hubs, global specialists, and world product mandates). Average responses, frequency distribution and statistical analysis have been used in order to identify the prevalence of each subsidiary type in Greece. Findings – Findings indicate that foreign operations in the focal country have a rather market-seeking rationale. However, a considerable percentage of MNEs aims at widening the functional scope of their subsidiaries through knowledge-seeking investments. Subsidiaries in Greece seem to escape from an introverted focus on the local market through an intense export orientation towards EU countries and the Balkan region. Research limitations/implications – The core of the paper is to identify subsidiary roles in a country of EU "periphery." One should be very cautious in generalizing the results for more advanced economies. Moreover, limited attention is ascribed to firm-specific determinants (e.g. size, years of operation, country of headquarters (HQs) origin) of subsidiary roles, and other environmental (e.g. situational constraints) characteristics. Practical implications – Governments in small countries should provide the incentives for creating an attractive environment for more qualitative investments. International managers should not ignore the potentials for advanced knowledge-related competitiveness of small countries. Foreign operations should reorient their investment interests in countries within regional blocs, since they can benefit from agglomeration economies. Originality/value – A new classification for subsidiary roles is proposed. There is currently limited evidence on the differentiated subsidiary roles in a small economy. The paper is believed to be the first to present a detailed analysis, for Greece, of the strategic bases for MNEs' expansion. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to improve the existing knowledge of international strategy antecedents of foreign subsidiary performance. Design/methodology/approach – Hypotheses are developed regarding the impact of perceived relatedness between the foreign subsidiary and the parent firm's core business unit, and the moderating effect of the subsidiary's business strategy. In order to test the hypotheses, the study uses survey data from Europe (Germany and the UK), and the USA, and the subsidiaries belong to Swedish manufacturing firms. Findings – Perceived relatedness regarding intangible resources affects foreign subsidiary performance positively. Competitive differentiation and market knowledge of a foreign subsidiary reinforce the performance impact of the perceived relatedness. Research limitations/implications – A foreign subsidiary's relatedness to the core business unit of its parent firm determines the subsidiary's ability to assimilate the parent firm's core competencies. The relatedness represents a synergy potential that is realized by the subsidiary's core competence exploitation and economies of learning. Originality/value – The paper extends current knowledge of international strategy antecedents of foreign subsidiary performance as it applies the perceptual approach to relatedness and acknowledges the impact of foreign subsidiary strategy. [ABSTRACT FROM AUTHOR]

Purpose - The purpose of this paper is to provide information for the companies that pretend to transfer knowledge to their subsidiaries situated in an least developed country (LDC), because of the local operative specificity which is influenced by three analytical dimensions: first, the multinational enterprise's (MNE) ability to transfer knowledge; second, the climate of cooperation between the MNE and its subsidiary; and third, the subsidiary's absorptive capacity. Design/methodology/approach - The present case study deals with three companies with subsidiaries in Mozambique which develop activities in the industrial sector, where the procedures of the analysis of contents are applied in order to answer the research questions. Findings - The results show that the transferred knowledge must be directed at the operational needs felt locally. It must be avoided that the receiver believes the transferred knowledge is imposed by the transmitter, in order for it to be used as an asset in the production of new products, but without reproducing the MNE headquarters' business model because of the specific local context. Research limitations/implications - The case study method does not allow the results to be generalized, but it permits the investigation of a combination of problems of the phenomenon thus contributing to its better understanding. Originality/value - The results obtained contribute to a better understanding and greater efficiency of the process of knowledge transfer to the subsidiaries situated in an LDC, taking into consideration the particular characteristics of the local market and the local absorptive capacity. [ABSTRACT FROM AUTHOR]

Purpose - Many companies are part of parent-subsidiary supply chains, i.e. organisations where a parent company receives products from its subsidiary or the other way around. Having this close relationship in a supply chain network opens the possibilities for different setups of enterprise resource planning (ERP) systems across such companies. This paper clarifies the different ERP system strategies for companies in parent-subsidiary supply chains and the consequences of choosing the different strategies. Design/methodology/approach - In order to position the contributions of the paper, literature on the use of ERP systems in supply chain management (SCM) is investigated. Next, four archetypical ERP system setups across parent-subsidiary supply chains are defined. The consequences of the four defined setups are deduced. Three case studies are presented to justify the relevance of the defined four ERP system strategies and to further investigate the consequences of choosing these (one case study represents two strategies). Findings - The paper shows that there are significant impacts of choosing one of the four ERP system setups across parent-subsidiary supply chains, e.g. quality of communication, degree of local management, synergy effects, etc. Furthermore, the paper shows that extant literature dealing with ERP systems and SCM fails to consider this aspect, which may at worst lead to incorrect generalisations. Research limitations/implications - The paper clarifies the importance of considering different ERP system setups in parent-subsidiary relationships. Future research in ERP systems and SCM needs to focus more on this aspect. Practical implications - The paper provides an improved basis for companies in parent-subsidiary supply chains that are to implement ERP systems or are to rethink their current ERP strategy. Originality/value - The definition of ERP system setups across parent-subsidiary supply chains and the clarification of the consequences of these strategies represent new and useful contributions to the SCM and the ERP literature. [ABSTRACT FROM AUTHOR]

Purpose - The study of the market orientation of MNC subsidiaries in foreign markets has been generally limited. This paper, therefore, aims to assess the effects of market orientation on performance and the factors affecting the utilization of market orientation by foreign subsidiaries. Design/methodology/approach - Market orientation is operationalized within the context of the foreign market. Research hypotheses are tested using a sample of 168 Korean MNC subsidiaries operating in China and India, the two most giant emerging countries in the world. Findings - The results show that market orientation performs an important function in foreign subsidiary performance. In addition, foreign subsidiaries, which possess superior technology advantages and maintain active network relationships with local key entities such as suppliers, distributors, customers, and governmental authorities, are shown to actively devote themselves to market orientation. Originality/value - As this study is to address the influence of MNC subsidiaries' market orientation on their business performance in the emerging markets, the results are expected to make a contribution to the literature in the field of market orientation. [ABSTRACT FROM AUTHOR]

Multinational companies and their subsidiaries have been important actors in the world economy. However, we know relatively little about the evolution of subsidiaries and their adaption to host country conditions. This article is a case study of a Norwegian subsidiary of the Canadian mining multinational Falconbridge Nickel Mines Ltd. It examines what autonomy the subsidiary had, how the autonomy was used, its development of knowledge and how it adapted to Norwegian ways of doing business. The article shows that subsidiaries may contribute significantly to the development of their mother companies. It highlights four factors that influenced the degree of autonomy and the evolution of subsidiaries in the inter-war era; namely host country politics, the line of business, the configuration of knowledge within the given multinational company and in case of acquisitions; the prehistory of the subsidiary. [ABSTRACT FROM AUTHOR]

The 2008-2009 financial crisis, which affected banks in the European Union, draws attention to how vulnerable eastern and central European countries are to the flow of capital from western European banks and to balance-of-payment crises. These countries face two sorts of financial risks, which have increased since 2000: first of all, the direct financial exposure between western European banks and these countries; and secondly, the risk of regional contagion owing to spillover effects and a common creditor channel, as parent banks pass their problems on to regional subsidiaries. Estonia runs both these risks whereas Latvia, Lithuania, Romania, Bulgaria and Hungary are the most exposed to foreign debt-holders. Though apparently less exposed to the direct risk than to the indirect one, the Czech Republic and Slovakia are not protected from banking problems and could fall victim to regional contagion. [ABSTRACT FROM AUTHOR]

Managing stakeholders is an important managerial aspect of corporate social responsibility. Employee stakeholder is one of the primary stakeholders that are critical to a company. Previous studies have shown inconclusive findings regarding the performance impact of managing this stakeholder, with some identifying little impact while others finding a positive association. This study further explores this issue in the context of foreign companies' subsidiaries in China. A potential mediating mechanism (i.e., customer orientation) between employee stakeholder orientation and performance (both financial performance and innovation performance) was proposed; a sample of 103 Chinese subsidiaries of foreign companies which have new product development responsibilities was used to test hypotheses. A subsidiary's employee orientation was found to show a significant positive relationship with its product innovation performance, but no significant relationship with its financial results. Moreover, employee orientation showed a significant indirect relationship with both performance outcomes through customer orientation. [ABSTRACT FROM AUTHOR]

This article aims to build a typology for internationalization processes by combining two theoretical fields of the behavioral approach of internationalization that have evolved separately: the relational model of internationalization and the literature of subsidiary development. We developed a comparative case study with 12 British multinational firms that operate in the Brazilian market. This study was based on a vast secondary data collection coupled with 42 semi-structured interviews carried out with individuals from headquarters and subsidiaries. The individual data analysis involved the mapping of internationalization processes, which relied on the mode of operation as the critical event. In its turn, the comparative analysis involved defining the dimensions of the typology and associating its groups with the researched cases. As a result, the internationalization processes were classified into four typological groups which enabled us to delve into the spatial and temporal dimensions of firm internationalization. [ABSTRACT FROM AUTHOR]

Copyright of RAE - Eletrônica is the property of Fundacao Getulio Vargas and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper reports the findings from five case studies on Danish-owned subsidiaries in China and India and demonstrates how a subsidiary's issue-selling strategy influences its bargaining power in intrafirm competition within a multinational corporation. Issue-selling strategies of subsidiaries involve various activities aiming at (a) making the parent company understand an issue, (b) attracting parent-company attention to an issue, and (c) lobbying for an issue at the parent company. Next to illustrating these activities, the empirical part of the paper shows that subsidiaries managed by parent-company nationals have more bargaining power than subsidiaries managed by host-country nationals. To begin with, parent-company national subsidiary managers are better at translating the context-specific information deriving from cultural distances between the parent company and the subsidiary. Second, they are better at packaging the issue in order to match parent-company formalised application requirements. Further, they are better at framing the issue to match the parent-company goals and objectives. And last, they often have closer relationships with decision makers within the parent company. [ABSTRACT FROM AUTHOR]

Purpose - The purpose of this paper is to explore corporate social responsibility in context of the dumping of electronic waste (e-waste), inferior products and second-hand goods, and related activities of multinational corporations' (MNCs') subsidiaries in Ghana. It aims to suggest examples and recommendations to help curb the negative effects of dumping in Ghana. Design/methodology/approach - Research into specific e-waste and scavenging activities and its impact on indigenous people and the environment is analyzed. Furthermore, findings on relevant stakeholders who have interest in this menace are reviewed. There is also a general discussion of the effect of other import/export activities that are tantamount to dumping. Findings - One can often observe ignorant scavengers around "recycling sites" demarcating their portions of the waste which includes discarded computers, televisions, micro-waves, radio sets, and VCR amongst others. These wastes are often carried to strategic points where these people they extract some "valuable" components. It is known that MNCs find it expensive to re-cycle these wastes in their home countries, thereby diversifying them to "new markets" often termed as "bridging the digital divide". The hazards involved do not only affect the environment, but also the health of the indigenous people. Furthermore, there is the increase of inferior products as well as second-hand goods in the country. Governments can set import restrictions, the pressure groups can help take appropriate actions to mitigate the effects. Educating the indigenous people in consciousness in the health hazards in e-waste becomes necessary. Proper disposal and re-cycling activities should be implemented by the government and collaborated by MNCs. Originality/value - This paper can initial attempt to integrate the effect of dumping and contributions from stakeholders to enforce MNCs and their subsidiaries to be socially responsible in the Ghanaian business environment. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to analyze relationship patterns between headquarters and subsidiaries of Brazilian Multinationals Enterprises (BrMNEs). The key construct for that investigation is Subsidiary Initiative, which comprises Subsidiary Entrepreneurial Orientation, Autonomy, Integration, Local Competitive Context and Business Network. A survey was carried out in a sample of 65 subsidiaries of 29 BrMNEs. The main outcome is that subsidiaries are highly integrated and receive Entrepreneurial Orientation from Headquarters (HQs), but Initiative is limited. Actually, the main determinants of subsidiary's initiatives are Local Context and Business Networking in the host country. This apparent paradox may be explained by what we call 'rebellious subsidiaries', which take initiatives based on their business environment and connections, regardless of their HQs' directions or delegation of autonomy [ABSTRACT FROM AUTHOR]

The complexity of the modern firm is one of the defining features of the global economy. This study examines one dimension in which this complexity can be observed, the corporate subsidiary. Here we investigate where the headquarters of the largest subsidiaries are located in the United States, where subsidiary growth is occurring, and how the United States compared with Canada from 1996 to 2004. The results show that U.S. parent and subsidiary headquarters have different metropolitan distributions, and that 1996-2004 parent and subsidiary growth patterns were also distinct. New York saw its parent headquarters community grow, while its subsidiary headquarters community exhibited the sharpest decline of any U.S. metropolitan area. This spatial behavior was the opposite of what occurred in Canada, where Toronto dominated in subsidiary growth while experiencing one of the largest parent headquarters declines among Canadian metropolitan areas. Our study interprets these results and calls for further research to pursue the questions raised here. [ABSTRACT FROM AUTHOR]

Copyright of Revista de Administração e Inovação (RAI) is the property of Revista de Administracao e Inovacao- RAI and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Cuadernos de Contabilidad is the property of Pontificia Universidad Javeriana and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The article discusses the court case Valiant Cleaning Technology Inc. versus the Queen on the tax deductions of cash advances made by the company to its subsidiary Valiant Elan Systems Ltd. in Great Britain. The case arose when the Canada Revenue Agency (CRA) rejected the treatment of the advances as capital losses for income tax deductions in 2004 after Elan was shut down in 2001. The Tax Court of Canada ruled that the advances were not made to help Elan but to protect the reputation, income and tier 1 supplier status of Valiant to Ford Motor Co.

Purpose – A major challenge faced by MNCs is how to manage knowledge transfer between headquarters and subsidiaries located in dissimilar cultural contexts. While the impact of culture on knowledge transfer has been widely acknowledged, an important gap in the literature is how cultural distance (external variable) and subsidiary roles (internal variable) interact in impacting on knowledge flows in MNCs. The purpose of this paper is to present an integrative model to advance understanding of the interaction between cultural distance and subsidiary roles in the knowledge transfer process within MNCs. Design/methodology/approach – An environment-strategy-performance framework is developed based on a review of extant literature. A case study is used to substantiate the framework. It was conducted in an MNC in China and involved in-depth interviews with expatriate and local managers. Findings – Knowledge transfer in MNCs is influenced by external context (cultural distance) and internal mechanisms (subsidiary roles). The direction and magnitude of knowledge flows is related to the strategic roles of the subsidiary and is influenced by cultural distance. Negative impacts are evident where cultural distance is large, with positive impacts where cultural synergies occur. Changes in Chinese cultural values impacting on knowledge transfer are also evident. Originality/value – The conceptual model combines internal resource and external environmental perspectives. It links literature on cross-cultural management, subsidiary roles and MNC knowledge transfer. Furthermore, it explores linkages between culture and knowledge transfer, cultural distance and subsidiary roles, knowledge transfer and subsidiary roles. The model is operationalised in a China-based case study. [ABSTRACT FROM AUTHOR]

Purpose - This study aims to explore subsidiaries' diversification strategies, both internationally and with regard to their product offerings. The study seeks to examine, at the subsidiary level, the relationships between subsidiary size, internationalization, production diversification, and performance. Design/methodology/approach - Based on the archival data of an officially conducted survey, the study used ordered logit regression analysis to test its hypotheses using data from 920 Taiwanese subsidiaries in China. Findings - The study's results revealed: larger subsidiaries tend to engage in internationalization and product diversification activities to a greater degree, and, as a result, tend to exhibit superior performance; and subsidiaries that pursue outward internationalization and that reinvest in related businesses enjoy enhanced performance. Research limitations/implications - This study examines Taiwanese firms that have one foreign subsidiary in China. Future research should examine larger firms with numerous foreign subsidiaries in developed countries, and should employ more fine-grained measurements of subsidiary size to provide a clearer picture of subsidiary-specific advantages. Originality/value - Unlike the existing literature, which has tended to take the perspective of the multinational corporation, this study examines internationalization and product diversification at the subsidiary level. By extending the resource-based view to the subsidiary level, larger subsidiaries might be able to exploit their advantages so as to more successfully implement international and product diversification strategies and improve their performance in a host country. [ABSTRACT FROM AUTHOR]

This paper examines the relationships between foreign ownership, managers' independence in decision-making and exporting of foreign-invested firms in five European Union accession countries. Using a unique, hand-collected data set of 434 foreign-invested firms in Poland, Hungary, Slovenia, Slovakia and Estonia, we show that foreign investors' ownership and control over strategic decisions are positively associated with export intensity, measured as the proportion of exports to total sales. The study also analyzes specific governance and control configurations in foreign-invested firms, showing that foreign equity and foreign control over business functions are complementary in terms of their effects on export intensity. [ABSTRACT FROM AUTHOR]

This section presents abstracts of papers on city planning published from 2007 to 2008, including "Streets, Sounds and Identity in Inter-war Harlem," by Clare Corbould, "(Re)making the Other, Heterosexualising Everyday Space," by Kath Browne, and "Rankings and Reactivity: How Public Measures Recreate Social Worlds," by Wendy Nelson Espeland and Michael Sauder.

Subsidiaries of multinational firms play an important role in the globalization of innovation, yet we have an incomplete idea of the influences on their innovative activity. Drawing on prior research in international business and strategy, we identify two sets of factors that influence the absorption and utilization of knowledge in multinational corporation subsidiaries: (a) the range of external and internal knowledge sources available; and (b) the subsidiary capabilities associated with knowledge absorption and utilization. We find that knowledge absorbed from the host country is useful to subsidiary innovation. We also find support for the role of subsidiary capabilities: both sourcing capability and combinative capability have a significant influence on the scale and quality of innovation. [ABSTRACT FROM AUTHOR]

Purpose – To analyse the scope of localization strategies and corresponding benefits of these strategies to subsidiaries of international companies in the automobile industry in Thailand. Design/methodology/approach – The authors have adopted the case research method to investigate localization strategies of subsidiaries of seven companies (Toyota, Hino, Honda, Isuzu, DaimlerChrysler, BMW, and Auto Alliance) as well as 14 of their dealers and suppliers in Thailand. The information was gathered by conducting in-depth multiple interviews with 120 local and expatriate employees at various levels in the organizations; by referring to annual reports, policy documents and internal reports of these companies; and by observation during plant visits. Findings – Contrary to the belief that international companies implement localization strategies to simply match the local market environment, it was found that these companies implement a wide range of localization strategies to achieve multiple benefits. The paper identifies nine areas of localization: localization of strategic decision making; building and exploiting the local knowledge pool; deployment of local human resources; localization of R&D; localization of products; use of local supplier networks; adaptations to manufacturing processes; local deployment of subsidiary profits; and localization of corporate image. These localization strategies are not just based on the principle of "cost-based localization" but are based on "value-based localization." These strategies work in tandem and create value through a system of multiple benefits, such as managements' ability to comprehend and deal with uncertainty in the operating environment; make informed decisions to respond to challenges in developing efficient local assembly and marketing systems; cost reduction; higher degree of commitments by local employees; product customization and acceptance; and greater brand equity and image as a good corporate citizen. Practical implications – Based on concrete illustrations of seven companies, this study identifies nine distinct areas for planning and implementing localization strategies and their corresponding benefits. The managers of subsidiaries can benefit by focusing their localization efforts in these areas to gain maximum advantage from host country context and then translate these advantages into a competitive international strategy. Originality/value – CEOs of subsidiaries in emerging markets can learn how to build and harness local advantages for global competitiveness by implementing a wide range of localization strategies. [ABSTRACT FROM AUTHOR]

This paper investigates to what extent determinants of the rate of independent start-ups and the rate of new subsidiaries are different. Using a regional database for the Netherlands over the period 1988–2002, we investigate the impact of two types of agglomeration effects, localization and urbanization, while controlling for a range of economic variables. We find urbanization economies to be particularly important for the creation of new subsidiaries while localization economies are more important for the creation of independent new ventures. Finally, the effect of agglomeration variables is found to be stronger for manufacturing industries compared to services industries. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to examine the effect of individual factors on the transfer of human resource management (HRM) knowledge in Chinese subsidiaries of multinational corporations, and to explore the relationships between individual factors and introduce the concept of joint effect-integrated capability. Design/methodology/approach – Based on the notion that certain factors can affect knowledge transfer (KT), this paper examines the effect of four factors, i.e. cultural difference and adaptability, language and communication, working relationship, and motivation and willingness, on the transfer of HRM knowledge. The paper is based on an empirical study of 22 individual HR professionals from 21 Chinese subsidiaries. Data were collected through semi-structured interviews conducted between January and April 2004 and an exploratory data analysis was carried out with the assistance of Nvivo software. Findings – The study has found that Chinese HR managers have the ability of all four factors to facilitate the transfer of HRM knowledge. The findings further suggest that integrated capability-joint effect could be generated from the four factors and affect the transfer process jointly. When the capability is positive, it facilitates the transfer. Conversely, when the capability is negative, it impedes the transfer. Research limitations/implications – The findings not only extend the understanding of the effect of single factor on KT, but also the interrelationship between individual factors, their joint effect-integrated capability and the transfer process. Originality/value – Existing research has concentrated on studying the effect of single factor on KT, knowledge management by and large. There is little research investigating the correlations between individual factors. This paper addresses this gap and introduces the concept of joint effect, integrated capability. [ABSTRACT FROM AUTHOR]

This study examines the HRM practices and the role played by the HR department in foreign-owned units located in China and India. The study of 170 Western-owned subsidiaries analyses the extent to which the HRM practices associated with the local professionals and managerial-level employees resemble those of local firms versus those of the (main) Western parent organization, and investigates the degree to which the unit's HR department was perceived to play a strategic role. The results indicate clear differences between HRM characteristics in Western-owned units in China and India, and suggest that the use of expatriates and the background of the HR managers are important determinants of subsidiary HRM. [ABSTRACT FROM AUTHOR]

Purpose -- The purpose of this paper is to emphasize that procedural justice has a contribution to parent-subsidiary links within multinational enterprises (MNEs). Design/methodology/approach -- A mailed survey is adopted in this study. A total of 152 valid and complete questionnaires were returned from the respondents. Structural equation modeling and Chow test are used in this research paper. Findings -- Based on structural equation modeling, three significant dimensions of the parent-subsidiary links are found to contribute to the financial performance of the subsidiaries (resource commitment, information flow, and control flexibility). Based on Chow test, these dimensions can lead to better financial performance under greater procedural justice in the decision-making processes of MNEs. Research limitations/implications -- This study only collected information from Taiwanese multinational firms in East Asia and the Pacific countries, including China, Indonesia, Malaysia, Philippines, Thailand and Vietnam. Generally, these regions are the emerging market, with structurally volatile but fast-growing economies. In addition, further studies can extend the research to other countries, Environmental interferences, such as culture and legal rules, were not considered in this study. Practical implications -- In reality, although the due process is sometimes neglected because of time limitations or lack of patience, superior managers still should pay more attention to the processes of strategic decision making to keep the procedure fair and transparent. Originality/value -- This paper underlines the importance and value of the procedural justice in MNE management. The exercise of the procedural justice motivated subsidiary managers to aim for better financial performance with voluntary effort and their best ability. [ABSTRACT FROM AUTHOR]

Abstracts of articles related to state and national planning are presented which include "Analysis of Rail Transit Project Selection Bias With an Incentive Approach," by Wenling Chen, "Urban History for Planners," by Carl Abbott and "Rebuilding the Modern City After Modernism in Toronto and Berlin," by Douglas Young.