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A dual-role typology of multinational subsidiaries

Wang, J. and Liu, Xiaming and Li, Xiaoying (2009) A dual-role typology of multinational subsidiaries. International Business Review 18 (6), pp. 578-591. ISSN 0969-5931.

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Official URL: http://dx.doi.org/10.1016/j.ibusrev.2009.07.002

Abstract

This paper argues that, since a subsidiary is embedded in a dual context of both the MNE and the host environment, its strategic role should be assessed by its relative positions and contributions both within the knowledge networks of the MNE and the host country. Based on this, we develop a dual-role typology. The 369 multinational subsidiaries in our sample from China can be classified into as many as 12 out of the 16 conceptual groups of the typology. Our results indicate that dual activists (active both internally and externally) account for only 12% of the total sampled multinational subsidiaries while dual loners (inactive both internally and externally) reach 20%. The results from a larger sample by adding 113 minority foreign share firms show that external knowledge links are positively associated with local Chinese ownership. The central message from this paper is that a large proportion of foreign-invested firms in China are inactive in knowledge exchange either internally or externally or both. Managerial and policy implications are discussed.

Item Type: Article
Additional Information: NOTICE: this is the author’s version of a work that was accepted for publication in International Business Review. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in International Business Review, 18(6), Dec 2009, DOI:10.1016/j.ibusrev.2009.07.002
Keyword(s) / Subject(s): Dual context, multinational enterprises, subsidiary typology, two-way strategic relations
School or Research Centre: Birkbeck Schools and Research Centres > School of Business, Economics & Informatics > Management
Depositing User: Administrator
Date Deposited: 12 May 2011 13:30
Last Modified: 29 Apr 2013 09:16
URI: http://eprints.bbk.ac.uk/id/eprint/2063

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