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Perspectives on Subsidiaries

In: Innovation and the Multinational Firm: Perspectives on Foreign Subsidiaries and Host Locations

Author

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  • Alessandra Perri

    (Universita’ Ca’ Foscari Venezia)

Abstract

This chapter shifts the focus of the analysis of MNC innovation from headquarters to subsidiaries. It reviews IB literature on subsidiary evolution, and discusses the internal and external conditions leading subsidiaries to gain and further develop active roles in the management of local innovative activities. Leveraging innovation management literature, it describes subsidiaries as strategizing actors that govern their local knowledge assets in the pursuit of their subsidiary-specific objectives and incentives. Specifically, it suggests that subsidiaries’ local innovation management is driven by a combination of knowledge creation and knowledge protection imperatives. In the quest for such objectives, subsidiaries are able to actively and dynamically adapt their knowledge strategies to changing internal and external conditions.

Suggested Citation

  • Alessandra Perri, 2015. "Perspectives on Subsidiaries," Palgrave Macmillan Books, in: Innovation and the Multinational Firm: Perspectives on Foreign Subsidiaries and Host Locations, chapter 3, pages 62-85, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-55544-1_4
    DOI: 10.1057/9781137555441_4
    as

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