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5.2 ECONOMICS AND BUSINESS
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.
Sharkey Scott, P., Gibbons, P.T.:Subsidiary Entrepreneurship, Strategy Development Processes and Strategic Initiatives. Frontiers of Research in International Business: organizational Form and Function in the 21st Century:11th Annual International Business Research Forum, Fox Business School, Philadelphia, April 10, 2010