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Foreign-Owned Subsidiaries and Regional Development: The Case of Sweden

In: Multinational Corporate Evolution and Subsidiary Development

Author

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  • Julian Birkinshaw

Abstract

There continues to be a high level of interest in academic circles regarding the roles of subsidiary companies in multinational corporations (MNCs). This interest has been directed primarily towards the implications of subsidiary companies taking ever more strategic roles within their corporate system. As subsidiaries become ‘strategic leaders’ and gain ‘world product mandates’, it is argued, their relationship with headquarters shifts from one of subordination to equal partnership. This suggests a higher level of strategic discretion and opportunities for initiative on the part of the subsidiary (Birkinshaw, 1995), and a wholesale shift in the organisational logic of the MNC (Hedlund, 1994).

Suggested Citation

  • Julian Birkinshaw, 1998. "Foreign-Owned Subsidiaries and Regional Development: The Case of Sweden," Palgrave Macmillan Books, in: Julian Birkinshaw & Neil Hood (ed.), Multinational Corporate Evolution and Subsidiary Development, chapter 11, pages 268-298, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-26467-4_11
    DOI: 10.1007/978-1-349-26467-4_11
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    Citations

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    Cited by:

    1. Sérgio Fernando Loureiro Rezende, 2003. "Internationalisation processes: an analytical framework," RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração, vol. 7(2), pages 137-156.
    2. Schmid, Stefan & Schurig, Andreas, 2003. "The development of critical capabilities in foreign subsidiaries: disentangling the role of the subsidiary's business network," International Business Review, Elsevier, vol. 12(6), pages 755-782, December.
    3. Reger, Guido, 2004. "Coordinating globally dispersed research centres of excellence--the case of Philips Electronics," Journal of International Management, Elsevier, vol. 10(1), pages 51-76.
    4. Costa, Ionara & Filippov, Sergey, 2007. "A New Nexus Between Foreign Direct Investment, Industrial and Innovation Policies," MERIT Working Papers 2007-030, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    5. Andrzej Cieślik & Jan Jakub Michałek & Krzysztof Szczygielski & Jacek Lewkowicz & Jerzy Mycielski, 2021. "Foreign Ownership and Within-MNEs GVC Participation as Determinants of Innovation Activities: A CIS-Based Firm-Level Analysis," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 13(2), pages 189-211, June.
    6. Alarik, Björn, 2000. "From M-form to N-form: The Structure of Multinational Corporations," FE rapport 2000-378, University of Gothenburg, Department of Business Administration.
    7. Adenfelt, Maria & Lagerström, Katarina, 2006. "Knowledge development and sharing in multinational corporations: The case of a centre of excellence and a transnational team," International Business Review, Elsevier, vol. 15(4), pages 381-400, August.
    8. Lim, Chaisung & Hemmert, Martin & Kim, Seunghoi, 2017. "MNE subsidiary evolution from sales to innovation: Looking inside the black box," International Business Review, Elsevier, vol. 26(1), pages 145-155.
    9. Ryan, Paul & Giblin, Majella & Andersson, Ulf & Clancy, Johanna, 2018. "Subsidiary knowledge creation in co-evolving contexts," International Business Review, Elsevier, vol. 27(5), pages 915-932.
    10. 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.

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