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Multinational corporations, inter-organizational networks and subsidiary charter removals

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  • Dörrenbächer, Christoph
  • Gammelgaard, Jens

Abstract

This paper provides insights into the dynamics of a charter removal at a Hungarian subsidiary of the Siemens telecommunication switching division. By using inter-organizational network theory, we investigate how host-country factor endowments, the resource position of a subsidiary and the density of network exchange relationships within the organizational network influence the removal of a multinational corporate subsidiary's charter. The dispersion of resources in a multinational corporation drives intra-firm competition, which will typically lead to the removal of a subsidiary's charter if the subsidiary lacks specialized resources - typically an outcome of host country comparative disadvantages - and simultaneously holds a position on the periphery of the organizational network.

Suggested Citation

  • Dörrenbächer, Christoph & Gammelgaard, Jens, 2010. "Multinational corporations, inter-organizational networks and subsidiary charter removals," Journal of World Business, Elsevier, vol. 45(3), pages 206-216, July.
    • Handle: RePEc:eee:worbus:v:45:y:2010:i:3:p:206-216
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    15. Igor Gurkov & Evgeniy Morgunov & Zokirzhon Saidov & Alexander Arshavsky, 2018. "Perspectives of Manufacturing Subsidiaries of Foreign Companies in Russia: Frontier, Faubourg or Sticks?," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 12(2), pages 24-35.
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    21. Gammelgaard, Jens & McDonald, Frank & Stephan, Andreas & Tüselmann, Heinz & Dörrenbächer, Christoph, 2012. "The impact of increases in subsidiary autonomy and network relationships on performance," International Business Review, Elsevier, vol. 21(6), pages 1158-1172.
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    24. Helene Loe Colman & Birgitte Grøgaard & Inger G. Stensaker, 2022. "Organizational identity work in MNE subsidiaries: Managing dual embeddedness," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(9), pages 1997-2022, December.

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