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And the subsidiary lives on: Harnessing complex realities in the contemporary MNE

Author

Listed:
  • Daniel S. Andrews

    (Ivey Business School, Western University)

  • Phillip C. Nell

    (Vienna University of Economics and Business
    Copenhagen Business School)

  • Andreas P. J. Schotter

    (Ivey Business School, Western University
    Vienna University of Economics and Business)

  • Tomi Laamanen

    (University of St. Gallen)

Abstract

Managing multinational enterprise subsidiaries is a core facet of international business research. A shifting reality on the ground has triggered concerns around the waning relevance of the subsidiary because the MNE and its structure and processes have become increasingly complex. Consequently, more decentralized, responsive, and fluid organizational designs are now at the core of IB research. Juxtaposing recent arguments questioning subsidiary research altogether, we argue that IB scholars can explore and explain complex realities in the contemporary MNE without unnecessarily restricting the breadth of the field and giving up links to established research and theory. We reframe conversations around inward- and outward-looking perspectives, providing a path forward that emphasizes the importance of embracing the subsidiary concept in research reflecting today’s complex business environment.

Suggested Citation

  • Daniel S. Andrews & Phillip C. Nell & Andreas P. J. Schotter & Tomi Laamanen, 2023. "And the subsidiary lives on: Harnessing complex realities in the contemporary MNE," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(3), pages 538-549, April.
    • Handle: RePEc:pal:jintbs:v:54:y:2023:i:3:d:10.1057_s41267-022-00552-4
    DOI: 10.1057/s41267-022-00552-4
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    2. Andrews, Daniel S. & Fainshmidt, Stav & Newburry, William & Parente, Ronaldo & Haensel, Kira, 2023. "What determines subunit integration in the multinational firm? A meta-analysis," Journal of International Management, Elsevier, vol. 29(6).
    3. Reilly, Marty & Scott, Pamela Sharkey & Tippmann, Esther & Mangematin, Vincent, 2023. "Sustaining competence creation in the multinational enterprise: The role of piloting in subsidiaries," Journal of International Management, Elsevier, vol. 29(3).

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