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Title:
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The Autonomy Activity Status of Multinational Subsidiaries
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Author:
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Dzikowska, Marlena; Gammelgaard, Jens; Jindra, Björn |
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Abstract:
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Research concerning the autonomy of subsidiaries has been concentrated on the possession
of decision-making rights. Building on the definitional and empirical argumentation, we
claim that so understood autonomy has a prospective character, is not equal to the
implementation of actual actions (or lack of thereof) and neglects the issue of the scope of
potential actions. This paper aims to fill in the current literature gap by offering a holistic
stance in which we assert that subsidiaries can be meaningfully differentiated according to
their levels of autonomy and corresponding actions. We base this argumentation on the
findings of real option theory and competitive dynamics perspective, develop a typology
specific to a subsidiary’s autonomy activity status (the position of a subsidiary in terms of its
autonomy level confronted with the extent of actions taken in a corresponding area). We
evaluate empirical validity of this approach on a sample of 377 foreign subsidiaries located
in CEE countries. Our results (multinomial logit models) show that the proposed typology
has the power to define internally consistent positions which are differentiated along four
variables representing widely understood interdependencies within an MNE (sales
dependence, sourcing dependence, technological dependence of the foreign investor upon
the subsidiary and technological dependence of the subsidiary upon the MNE). |
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URI:
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http://hdl.handle.net/10398/9411
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Date:
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2016-12-13 |
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Notes:
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Paper presented at the 42nd EIBA Annual Conference of the European International Business Academy, Vienna, 2-4 December, 2016. |
This work is licensed under a Creative Commons License.
