Foreign Market Subsidiary Mandates
A Select and Temporary MNC Phenomenon?
Foreign Market Subsidiary Mandates
A Select and Temporary MNC Phenomenon?
This book investigates how foreign subsidiaries of multinational corporations expand their presence and functional scope into foreign territories. It thereby focuses on how cross-border subsidiary mandates are obtained and how they develop over time. Multiple case-studies based on in-depth interviews with HQ and subsidiary management suggest that subsidiary internationalization represents a select MNC phenomenon and that associated foreign market mandates are only of temporary nature. Foreign subsidiaries appear to receive cross-border responsibility if their value proposition for overcoming liability of inter-regional foreignness is capable of more than offsetting any risk increase that stems from principal-agent relationships between corporate headquarters and foreign subsidiaries. Following the initial mandate gain, the subsidiary's restrained access to HQ-like functions, intra-MNC competition and altering localization degrees in the market covered by the mandate puts the sustainability of cross-border responsibilities at risk. As a consequence, internationalization trajectories of foreign subsidiaries often follow discontinuous rather than gradual evolutionary paths. In addition, cross-border subsidiary mandates often appear to be predefined and temporary in nature. They might actually have a limited life span from their very conception.
Subsidiary evolution
Multinational firm.
Internationalization processes
Subsidiary mandatesSubsidiary evolution
Multinational firm.
Lohr, Nicolas
ISBN | 978-3-658-02667-7 |
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Artikelnummer | 9783658026677 |
Medientyp | Buch |
Auflage | 2014 |
Copyrightjahr | 2013 |
Verlag | Springer, Berlin |
Umfang | XIX, 294 Seiten |
Abbildungen | XIX, 294 p. 51 illus. |
Sprache | Englisch |