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The drivers of evolution/upgrading in Mexico's maquiladoras: How important is subsidiary initiative?

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  • Sargent, John
  • Matthews, Linda

Abstract

Corporate entrepreneurship may play an important role as a driver of industrial upgrading in multinational subsidiaries. In this study, we test to determine if subsidiary initiative is related to industrial upgrading in a sample of 50 Mexican maquiladoras. Based on qualitative and quantitative data collected from plant managers, this study provides qualified support for the notion that increased responsibilities within MNC networks are something earned through the entrepreneurial efforts of subsidiary managers rather than given by the parent company.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:worbus:v:41:y:2006:i:3:p:233-246
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    1. Utar, Hale & Ruiz, Luis B. Torres, 2013. "International competition and industrial evolution: Evidence from the impact of Chinese competition on Mexican maquiladoras," Journal of Development Economics, Elsevier, vol. 105(C), pages 267-287.
    2. Hitt, Michael A. & Li, Dan & Xu, Kai, 2016. "International strategy: From local to global and beyond," Journal of World Business, Elsevier, vol. 51(1), pages 58-73.
    3. Arza, Valeria & van Zwanenberg, Patrick, 2014. "The Politics of Technological Upgrading: International Transfer to and Adaptation of GM Cotton in Argentina," World Development, Elsevier, vol. 59(C), pages 521-534.
    4. Cavanagh, Andrew & Freeman, Susan & Kalfadellis, Paul & Herbert, Kendall, 2017. "Assigned versus assumed: Towards a contemporary, detailed understanding of subsidiary autonomy," International Business Review, Elsevier, vol. 26(6), pages 1168-1183.
    5. Dimitratos, Pavlos & Liouka, Ioanna & Young, Stephen, 2009. "Regional location of multinational corporation subsidiaries and economic development contribution: Evidence from the UK," Journal of World Business, Elsevier, vol. 44(2), pages 180-191, April.
    6. 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.
    7. Boojihawon, Dev Kumar & Dimitratos, Pavlos & Young, Stephen, 2007. "Characteristics and influences of multinational subsidiary entrepreneurial culture: The case of the advertising sector," International Business Review, Elsevier, vol. 16(5), pages 549-572, October.
    8. Jorge Luis García-Alcaraz & Aidé Aracely Maldonado-Macías & Sandra Ivette Hernández-Hernández & Juan Luis Hernández-Arellano & Julio Blanco-Fernández & Juan Carlos Sáenz Díez-Muro, 2016. "New Product Development and Innovation in the Maquiladora Industry: A Causal Model," Sustainability, MDPI, vol. 8(8), pages 1-18, July.
    9. Haq, Hammad ul & Drogendijk, Rian & Blankenburg Holm, Desirée, 2017. "Attention in words, not in deeds: Effects of attention dissonance on headquarters-subsidiary communication in multinational corporations," Journal of World Business, Elsevier, vol. 52(1), pages 111-123.
    10. 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).

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