This item is available under a Creative Commons License for non-commercial use only
5.2 ECONOMICS AND BUSINESS
Despite its theoretical and managerial significance, subsidiary entrepreneurship and its effects on subsidiary contribution remain underexplored in the literature. We propose that subsidiary entrepreneurship encourages more creative strategic responses to escalating environmental change. We explore the direct and mediating effects of subsidiary entrepreneurship on subsidiary contribution to the MNC, particularly subsidiary strategy creativity. We use structural equation modelling to test our propositions on data generated from surveying the population of Irish subsidiaries of foreign MNCs, and find strong support for our theoretical predictions. The managerial implications of subsidiary entrepreneurship in generating creative strategy, prompting strategic initiatives and improving performance are discussed.
Sharkey Scott, P., Gibbon, P.T., Couglan, J.: Developing Subsidiary Contribution to the MNC:Subsidiary Entrepreneurship and Strategy Creativity. Byond Silicon Valley:How emerging economies are shaping our understanding of global entrepreneurship:10th International Business Forum, Fox School of Business, Philadelphia, April 17-18, 2009.