Document Type

Article

Rights

Available under a Creative Commons Attribution Non-Commercial Share Alike 4.0 International Licence

Disciplines

5.2 ECONOMICS AND BUSINESS

Publication Details

Fox School of Business 11th Annual International Business Research Forum, Philadelphia

Abstract

MNCs gain competitive advantage through leveraging initiatives generated by their subsidiary networks. Yet we continue to have limited understanding of the complex conditions which promote initiatives. By integrating the subsidiary entrepreneurship literature and strategy development theory, we argue that the subsidiary’s approach to strategy development mediates the relationship between entrepreneurship and strategic initiative generation. We test our propositions on data generated from surveying the total population of Irish subsidiaries of foreign MNCs. Our findings confirm that an entrepreneurial subsidiary’s engagement in formal strategy development makes it better at generating strategic initiatives. This evidences the need for headquarters to encourage both subsidiary entrepreneurship and strategy development if they are to optimise the contribution from their subsidiary operations.

DOI

https://doi.org/10.21427/D7VB8F

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