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Different roles for subsidiaries: The case of multinational corporations in spain

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  • J. Carlos Jarillo
  • Jon I. Martíanez

Abstract

A framework is proposed to characterize the different roles that subsidiaries of multinational corporations (MNCs) can play within the firm's overall strategy. The framework is then applied to a sample of 50 Spanish subsidiaries of MNCs. These are found to be pursuing strategies consistent with the framework. At the same time, a strategic evolution is detected towards a closer integration of the subsidiaries with their parent group. It is hypothesized that changes in the Spanish sociopolitical context, especially the country's entry into the European Economic Community, are fueling that process of strategic change.

Suggested Citation

  • J. Carlos Jarillo & Jon I. Martíanez, 1990. "Different roles for subsidiaries: The case of multinational corporations in spain," Strategic Management Journal, Wiley Blackwell, vol. 11(7), pages 501-512, November.
    • Handle: RePEc:bla:stratm:v:11:y:1990:i:7:p:501-512
    DOI: 10.1002/smj.4250110702
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    Cited by:

    1. Dzikowska Marlena & Gorynia Marian, 2020. "Long-term evolution of the subsidiary’s role: a qualitative perspective on a subsidiary located in Poland," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 56(1), pages 79-95, March.
    2. Gillmore, Edward, 2022. "Mandate dynamics and the importance of mandate loss for subsidiary evolution," International Business Review, Elsevier, vol. 31(6).
    3. Liu, Ting & Li, Xizhuo, 2022. "How Do MNCs Conduct Local Technological Innovation in a Host Country? An Examination From Subsidiaries' Perspective," Journal of International Management, Elsevier, vol. 28(3).
    4. Marian Gorynia & Oliwia Samelak, 2013. "Przegląd badań nad funkcjonowaniem filii korporacji transnarodowych w Polsce," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 10, pages 69-91.
    5. Banerjee, Shantanu & Venaik, Sunil & Brewer, Paul, 2019. "Analysing corporate political activity in MNC subsidiaries through the integration-responsiveness framework," International Business Review, Elsevier, vol. 28(5), pages 1-1.
    6. Wu, Yan & Strange, Roger & Shirodkar, Vikrant, 2021. "MNE divestments of foreign affiliates: Does the strategic role of the affiliate have an impact?," Journal of Business Research, Elsevier, vol. 128(C), pages 266-278.
    7. Andrews, Daniel S. & Fainshmidt, Stav & Newburry, William & Parente, Ronaldo & Haensel, Kira, 2023. "What determines subunit integration in the multinational firm? A meta-analysis," Journal of International Management, Elsevier, vol. 29(6).
    8. Luo, Yadong & Maksimov, Vladislav & Bu, Juan, 2021. "Making Geographic Dispersion Work for Emerging Market MNEs," Journal of International Management, Elsevier, vol. 27(3).
    9. Ángel Calvo, 2022. "Japanese ICT multinationals in Southern Europe by the end of the twentieth century: Fujitsu in Spain," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(2), pages 1341-1373, June.
    10. Klaus E. Meyer & Chengguang Li & Andreas P. J. Schotter, 2020. "Managing the MNE subsidiary: Advancing a multi-level and dynamic research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 538-576, June.
    11. Lee, Hyoungjin & Chung, Chris Changwha & Beamish, Paul W., 2019. "Configurational characteristics of mandate portfolios and their impact on foreign subsidiary survival," Journal of World Business, Elsevier, vol. 54(5), pages 1-1.
    12. Lunnan, Randi & Meyer, Klaus & Mudambi, Ram & Yang, Qin, 2023. "The impact of knowledge and financial resource flows for MNE strategy: A typology of subsidiary roles," International Business Review, Elsevier, vol. 32(6).
    13. Xufei Ma & Andrew Delios & Shu Yu, 2020. "Innovation in MNC’S strategy and structure: the (re) emergence of host country headquarters in large emerging markets," Asia Pacific Journal of Management, Springer, vol. 37(3), pages 609-632, September.
    14. Nayab Zahra & Danish Ahmed Siddiqui, 2020. "Can Parents be attributed for their Subsidiary Performance?: A Multi-Level Analysis for Performance Determinants of Multinational Enterprises in Pakistan," International Journal of Regional Development, Macrothink Institute, vol. 7(2), pages 1-38, December.
    15. Klaus E. Meyer & Chengguang Li & Andreas P. J. Schotter, 0. "Managing the MNE subsidiary: Advancing a multi-level and dynamic research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-39.
    16. Lô, Amadou & Geiger, Martha, 2022. "Managing internal embeddedness in multinational corporations’ R&D subsidiaries: An evolutionary perspective on the automotive industry in Silicon Valley," Technovation, Elsevier, vol. 113(C).
    17. à sta Dís Óladóttir, 2010. "Integrative Capacity as a Moving Force in Newly Formed Icelandic Multinational Enterprises," Review of Market Integration, India Development Foundation, vol. 2(1), pages 135-172, April.
    18. Chun-Chien Lin & Yu-Ching Chiao & Tung-Lung Chang & Yu-Chen Chang, 2023. "The determinants of the use of process control mechanisms in FDI decisions in headquarters–subsidiary relationships," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-14, December.
    19. Guido Nassimbeni & Guido Orzes & Marco Sartor, 2018. "Strategic Types and Competences of Domestic and Foreign Plants: An Empirical Study," Global Business Review, International Management Institute, vol. 19(4), pages 817-841, August.
    20. Chatzopoulou, Erifili-Christina & Dimitratos, Pavlos & Lioukas, Spyros, 2021. "Agency controls and subsidiary strategic initiatives: The mediating role of subsidiary autonomy," International Business Review, Elsevier, vol. 30(3).
    21. Ambos, Björn & Kunisch, Sven & Leicht-Deobald, Ulrich & Schulte Steinberg, Adrian, 2019. "Unravelling agency relations inside the MNC: The roles of socialization, goal conflicts and second principals in headquarters-subsidiary relationships," Journal of World Business, Elsevier, vol. 54(2), pages 67-81.
    22. Cao, Mingchun & Alon, Ilan, 2021. "Overcoming the liability of foreignness – A new perspective on Chinese MNCs," Journal of Business Research, Elsevier, vol. 128(C), pages 611-626.
    23. Jing Zeng & Keith W. Glaister & Tamer Darwish, 2019. "Processes Underlying MNE Subsidiary Absorptive Capacity: Evidence from Emerging Markets," Management International Review, Springer, vol. 59(6), pages 949-979, December.
    24. Mathias Guérineau & Sihem Ben Mahmoud-Jouini & Florence Charue-Duboc, 2018. "Differentiate subsidiaries contributions in a multinational corporation’s innovation strategy [Diferenciar las contribuciones de las filiales en la estrategia de innovación de la empresa multinacio," Post-Print hal-04574353, HAL.
    25. Tina C Ambos & Sebastian H Fuchs & Alexander Zimmermann, 2020. "Managing interrelated tensions in headquarters–subsidiary relationships: The case of a multinational hybrid organization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(6), pages 906-932, August.

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