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The Mnc As A Differentiated Network: Subsidiary Technology Embeddedness And Performance

Author

Listed:
  • Andersson, Ulf

    (Uppsala University)

  • Forsgren, Mats

    (Department of International Economics and Management, Copenhagen Business School)

  • Pedersen, Torben

    (Department of International Economics and Management, Copenhagen Business School)

Abstract

There has been a growing interest in looking upon the MNC as a differentiated network in the sense that subsidiaries have access to different types of resources and therefore perform differently in its market-place and within the MNC. Yet, even though subsidiaries are the object of intense interests, remarkably little have been written about assessment of subsidiary performance. In short, the possibilities of subsidiaries seem to generate more attention in the literature than their results. The two distinctive features of this paper lie in the development of the concept of subsidiary performance and the exploration of the linkage between subsidiary embeddedness and performance. More specifically, by drawing on literature about organizational learning, absorptive capacity and embeddedness in business relationships, some hypotheses will be formulated about the casual link between subsidiary environment and subsidiary performance. The hypotheses are tested in an LISREL-model based on data of 98 subsidiaries belonging to Swedish multinationals.

Suggested Citation

  • Andersson, Ulf & Forsgren, Mats & Pedersen, Torben, 1999. "The Mnc As A Differentiated Network: Subsidiary Technology Embeddedness And Performance," Working Papers 3-1999, Copenhagen Business School, Department of International Economics and Management.
    • Handle: RePEc:hhb:cbsint:1999-003
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    File URL: http://openarchive.cbs.dk/cbsweb/handle/10398/6621
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    References listed on IDEAS

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    Cited by:

    1. Omar Salgado, 2011. "Barriers to the accomplishment of a subsidiary's strategic role: how location and corporate networks influence subsidiary performance," RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração, vol. 15(2), pages 261-282.
    2. Urmas Varblane & Katrin M??nnik & Helena Hannula, 2005. "Autonomy and Performance of Foreign Subsidiaries in five Transition Countries," William Davidson Institute Working Papers Series wp780, William Davidson Institute at the University of Michigan.

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    Keywords

    MNC; subsidiaries; Sweden;
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