Document Type

Conference Paper

Rights

This item is available under a Creative Commons License for non-commercial use only

Disciplines

5.2 ECONOMICS AND BUSINESS

Publication Details

Fox School of Business 10th Annual International Business Research Forum, Philadelphia.

Abstract

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.

DOI

10.21427/D7TB84

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