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Headquarters–subsidiary interaction during the introduction of a value product in India

Author

Listed:
  • Roger Schweizer

    (University of Gothenburg)

  • Katarina Lagerström

    (University of Gothenburg
    Uppsala University)

  • Johan Jakobsson

    (University of Gothenburg)

Abstract

In India, it has become imperative for multinational corporations (MNCs) to succeed in the value segment. Based on a longitudinal case study of Volvo Bus and understanding the introduction of a value product as a subsidiary initiative, we take an internal perspective highlighting the interaction between the headquarters and the local subsidiary. We find that recurring resistance of the corporate immune system—as a political intervention or lack of resources and support—is a major hindrance for the introduction of a value product; this results in the MNC distancing itself from the value product opportunity over time.

Suggested Citation

  • Roger Schweizer & Katarina Lagerström & Johan Jakobsson, 2021. "Headquarters–subsidiary interaction during the introduction of a value product in India," Asian Business & Management, Palgrave Macmillan, vol. 20(5), pages 666-688, November.
    • Handle: RePEc:pal:abaman:v:20:y:2021:i:5:d:10.1057_s41291-019-00098-8
    DOI: 10.1057/s41291-019-00098-8
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    References listed on IDEAS

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