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Developing subsidiary contribution to the MNC--Subsidiary entrepreneurship and strategy creativity

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  • Scott, Pamela
  • Gibbons, Patrick
  • Coughlan, Joseph

Abstract

Despite its theoretical and managerial significance, subsidiary entrepreneurship and its effects on subsidiary contribution remain underexplored in the literature. We propose that subsidiary entrepreneurship encourages more creative strategic responses to escalating environmental change. We explore the direct and mediating effects of subsidiary entrepreneurship on subsidiary contribution to the MNC, particularly subsidiary strategy creativity. We use structural equation modelling to test our propositions on data generated from surveying the population of Irish subsidiaries of foreign MNCs, and find strong support for our theoretical predictions. The managerial implications of subsidiary entrepreneurship in generating creative strategy, prompting strategic initiatives and improving performance are discussed.

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  • Scott, Pamela & Gibbons, Patrick & Coughlan, Joseph, 2010. "Developing subsidiary contribution to the MNC--Subsidiary entrepreneurship and strategy creativity," Journal of International Management, Elsevier, vol. 16(4), pages 328-339, December.
    • Handle: RePEc:eee:intman:v:16:y:2010:i:4:p:328-339
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    2. Sarabi, Almasa & Froese, Fabian J. & Chng, Daniel H.M. & Meyer, Klaus E., 2020. "Entrepreneurial leadership and MNE subsidiary performance: The moderating role of subsidiary context," International Business Review, Elsevier, vol. 29(3).
    3. 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).
    4. Achcaoucaou, Fariza & Miravitlles, Paloma & León-Darder, Fidel, 2017. "Do we really know the predictors of competence-creating R&D subsidiaries? Uncovering the mediation of dual network embeddedness," Technological Forecasting and Social Change, Elsevier, vol. 116(C), pages 181-195.
    5. Gillmore, Edward, 2022. "Mandate dynamics and the importance of mandate loss for subsidiary evolution," International Business Review, Elsevier, vol. 31(6).
    6. Clark, Kim & Ramachandran, Indu, 2019. "Subsidiary Entrepreneurship and Entrepreneurial Opportunity: An Institutional Perspective," Journal of International Management, Elsevier, vol. 25(1), pages 37-50.
    7. 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.
    8. 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.
    9. Hill, T.L. & Mudambi, Ram, 2010. "Far from Silicon Valley: How emerging economies are re-shaping our understanding of global entrepreneurship," Journal of International Management, Elsevier, vol. 16(4), pages 321-327, December.
    10. Sidney Costa & Felipe Mendes Borini, 2017. "Global Innovation in Foreign Subsidiaries: The Impact of Entrepreneurial Orientation and Corporate Networks," Brazilian Business Review, Fucape Business School, vol. 14(4), pages 417-434, July.
    11. Hon, Alice H.Y. & Lu, Lin, 2015. "Are we paid to be creative? The effect of compensation gap on creativity in an expatriate context," Journal of World Business, Elsevier, vol. 50(1), pages 159-167.
    12. George O. White & Orhun Guldiken & Thomas A. Hemphill & Wu He & Mehdi Sharifi Khoobdeh, 2016. "Trends in International Strategic Management Research From 2000 to 2013: Text Mining and Bibliometric Analyses," Management International Review, Springer, vol. 56(1), pages 35-65, February.
    13. Elisa Mattarelli & Maria Rita Tagliaventi, 2015. "How Offshore Professionals' Job Dissatisfaction Can Promote Further Offshoring: Organizational Outcomes of Job Crafting," Journal of Management Studies, Wiley Blackwell, vol. 52(5), pages 585-620, July.
    14. Crespo, Cátia Fernandes & Crespo, Nuno Fernandes & Curado, Carla, 2022. "The effects of subsidiary’s leadership and entrepreneurship on international marketing knowledge transfer and new product development," International Business Review, Elsevier, vol. 31(2).

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