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Corporate entrepreneurship in network organizations:: How subsidiary initiative drives internal market efficiency

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  • Birkinshaw, Julian

Abstract

Julian Birkinshaw believes that corporate entrepreneurship can play an important strategic rôle in the business development of large, multinational firms, and he particularly identifies internal initiatives by subsidiary companies. The growth of network organizations is relevant here, and he puts forward a framework for an 'internal market' to understand how they work. The internal market model is used to examine the various roles that corporate entrepreneurs can play in the large firm, with the aim of achieving network optimization. The author assesses the costs and benefits of internal initiatives, and points out the importance of arriving at an appropriate level of subsidiary entrepreneurship, agreed by head office and subsidiary, rather than applying blanket prescriptions.

Suggested Citation

  • Birkinshaw, Julian, 1998. "Corporate entrepreneurship in network organizations:: How subsidiary initiative drives internal market efficiency," European Management Journal, Elsevier, vol. 16(3), pages 355-364, June.
    • Handle: RePEc:eee:eurman:v:16:y:1998:i:3:p:355-364
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    Cited by:

    1. Sargent, John & Matthews, Linda, 2006. "The drivers of evolution/upgrading in Mexico's maquiladoras: How important is subsidiary initiative?," Journal of World Business, Elsevier, vol. 41(3), pages 233-246, September.
    2. Robert Pearce, 2001. "Multinationals and Industrialisation: The Bases of 'Inward Investment' Policy," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 8(1), pages 51-73.
    3. 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.
    4. Schmid, Stefan & Dzedek, Lars R. & Lehrer, Mark, 2014. "From Rocking the Boat to Wagging the Dog: A Literature Review of Subsidiary Initiative Research and Integrative Framework," Journal of International Management, Elsevier, vol. 20(2), pages 201-218.
    5. Clark, Kim & Ramachandran, Indu, 2019. "Subsidiary Entrepreneurship and Entrepreneurial Opportunity: An Institutional Perspective," Journal of International Management, Elsevier, vol. 25(1), pages 37-50.
    6. Sergey Filippov & Geert Duysters, 2011. "Competence-building in foreign subsidiaries: The case of new EU member states," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 16(4), pages 286-314.
    7. Gaur, Sonjaya S. & Evanschitzky, Heiner & Ahlert, Dieter & Kolhatkar, Ajay A., 2005. "Marketing innovative service solutions with inter-organizational service networks: opportunities and threats," Working Papers 26, University of Münster, Competence Center Internet Economy and Hybrid Systems, European Research Center for Information Systems (ERCIS).
    8. Manuel Castriotta & Michela Loi & Elona Marku & Ludovica Moi, 2021. "Disentangling the corporate entrepreneurship construct: conceptualizing through co-words," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(4), pages 2821-2863, April.
    9. 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.
    10. Ahsan, Mujtaba & Fernhaber, Stephanie A., 2019. "Multinational Enterprises: Leveraging a Corporate International Entrepreneurship Lens for New Insights Into Subsidiary Initiatives," Journal of International Management, Elsevier, vol. 25(1), pages 51-65.
    11. Gorgijevski, Alexander & Holmström Lind, Christine & Lagerström, Katarina, 2019. "Does proactivity matter? the importance of initiative selling tactics for headquarters acceptance of subsidiary initiatives," Journal of International Management, Elsevier, vol. 25(4).
    12. Galli Geleilate, Jose-Mauricio & Andrews, Daniel S. & Fainshmidt, Stav, 2020. "Subsidiary autonomy and subsidiary performance: A meta-analysis," Journal of World Business, Elsevier, vol. 55(4).
    13. Pearce, Robert & Papanastassiou, Marina, 2006. "To 'almost see the world': Hierarchy and strategy in Hymer's view of the multinational," International Business Review, Elsevier, vol. 15(2), pages 151-165, April.
    14. Dirk Michael Boehe, 2008. "Product Development In Emerging Market Subsidiaries — The Influence Of Autonomy And Internal Markets On Subsidiary Roles," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 5(01), pages 29-53.
    15. Jindra, Björn & Giroud, Axèle & Scott-Kennel, Joanna, 2009. "Subsidiary roles, vertical linkages and economic development: Lessons from transition economies," Journal of World Business, Elsevier, vol. 44(2), pages 167-179, April.
    16. Paterson, S. L. & Brock, D. M., 2002. "The development of subsidiary-management research: review and theoretical analysis," International Business Review, Elsevier, vol. 11(2), pages 139-163, April.
    17. Andrea Elteto & Andrea Szalavetz & Gabor Tury & Aniko Magashazi, 2015. "Upgrading of Hungarian subsidiaries in machinery and automotive global value chains," IWE Working Papers 217, Institute for World Economics - Centre for Economic and Regional Studies.
    18. Park, Joonkyung, 2003. "Industry-Science Linkage," KDI Research Monographs, Korea Development Institute (KDI), volume 127, number 200301.

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