Roles of Subsidiaries to Parent and Motivations Justifying Their Presence in Developing Countries (DCs): Synthesis of Literature
Affiliation(s)
School of Management, Wuhan University of Technology, Wuhan, China. United Nations Economicand Social Commission for Asia and Pacific.
School of Management, Wuhan University of Technology, Wuhan, China. United Nations Economicand Social Commission for Asia and Pacific.
ABSTRACT
This paper reviews different policies
and looks in some detail at the factors influencing the choice of development
of subsidiaries in developing countries. It shows also that the subsidiaries
play an important role to the MNC units. We review in this paper some of
motives for international transfer, control, coordination, investment, and
development of new capability. This research highlights the peculiarities in
African business world and improves the strategies about the optimization of
the investment in developing countries.
Cite this paper
A. Abodohoui, B. Osunlalu and N. Guihua, "Roles of Subsidiaries to Parent and Motivations Justifying Their Presence in Developing Countries (DCs): Synthesis of Literature," iBusiness, Vol. 5 No. 3, 2013, pp. 123-127. doi: 10.4236/ib.2013.53B026.
A. Abodohoui, B. Osunlalu and N. Guihua, "Roles of Subsidiaries to Parent and Motivations Justifying Their Presence in Developing Countries (DCs): Synthesis of Literature," iBusiness, Vol. 5 No. 3, 2013, pp. 123-127. doi: 10.4236/ib.2013.53B026.
References
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[1] Adler and J. Nancy, “Globalization, Government, and Competitiveness,” Optimum, 1994, Vol. 25, No. 1, pp. 27-34. [2] Andersson, Ulf/Forsgren, Mats, “In Search of Centre of Excellence: Network Embeddedness and Subsidiary Roles in Multinational Corporations,” Management International Review; Fourth Quarter 2000, Vol. 40, No. 4, ABI/INFORM Complete pg. 329. [3] A. Phene and P. Almeida, “Innovation in Multinational Subsidiaries: The Role of Knowledge Assimilation and Subsidiary Capabilities,” Academy of International Business, 2008. [4] C. A. Bartlett, S. Ghoshal, “Transnational Management: Text, Cases and Readings in Cross-Border Management,” 3rd edition, Boston: Irwin McGraw Hill, 2000. [5] Balogun, P. Jarzabkowski and E. Vaara, “Selling, Resistance and Reconciliation: A Critical Discursive Approach to Subsidiary Role Evolution in MNEs,” Journal of International Business Studies, Vol. 42, 2011, pp. 765-786. doi:10.1057/jibs.2011.13 [6] J. Birkinshaw, et al., “Consequences of Perception Gaps in the Headquarters-subsidiary Relationship,” International Business Review, Vol. 9, 2000, pp. 321-344. doi:10.1016/S0969-5931(00)00004-4 [7] J. M. Birkinshaw and N. Hood, “Multinational Subsidiary Development: Capability Evolution and Charter Change in Foreign-owned Subsidiary Companies,” Academy of Management Review, Vol. 23, No. 4, 1998, pp. 773-796. [8] J. Cantwell, “A Theory of Technological Competence and Its Application to International Production,” in D. McFetridge, ed., Investment, Technology and Economic Growth, Calgary: The University of Calgary Press, 1991 pp. 93-109. [9] V. Chiesa and C. Masella, “Searching for an Effective Measure of R&D Performance,” In Proceedings, 2nd International Product Development Management Conference, Gothenburg, Sweden, 30-31 May1994, Brussels: European Institute for Advanced Studies in Management. [10] S. Chiraz et al., “Extension Du Rôle Des Filiales Occidentales Implantées Dans Les PED: Les Facteurs Déterminants,” Université Laval, Québec, 2004. [11] J. Dunning, “The Geographical Sources of the Competitiveness of Firms: Some Results of a New Survey,” Transnational Corporations, 1996, Vol. 5/3, pp. 1-29. [12] J. H. Dunning, “Multinational Enterprises and the Global Economy,” UK, Edward Elgar Publishing Limited, 2008. [13] K. Eriksson, J. Johanson, A. Majkgård and D. D. Sharma, “Effect of Variation on Knowledge Accumulation in the Internationalization Process,” International Studies of Management & Organization, Vol. 30, No. 1, 2000, pp. 26-44. [14] T. Frost, J. Birkinshaw and P. Ensign, “Centers of Excellence in Multinational Corporations,” Strategic Management Journal, Vol. 23, No. 11, 2002, pp. 997-1018. doi:10.1002/smj.273 [15] S. Ghoshal and C. A. Bartlett, “The Multinational Corporation as an Interorganizational Network,” Academy of Management Review, Vol. 15, No. 4, 1990, pp. 603- 625. [16] I. Martinkenaite, “Antecedents of Knowledge Transfer in Acquisitions,” Baltic Journal of Management, 2012, Vol. 7, No. 2, 2012, pp. 167-184. [17] J.-L. Mucchielli, Multinationalisation et Mondialisation. coll. Points, éd. du Seuil, 1998, p. 372. [18] B. Kogut and U. Zander, “Knowledge of the Firm and the Evolutionary Theory of the Multinational Corporation,” Journal of International Business Studies, Vol. 34, No. 6, 2003, pp. 516-529. doi:10.1057/palgrave.jibs.8400058 [19] Leong, S. Meng and C. T. Tan, “Managing Across Borders: An Empirical Assessment of the Bartlett and Ghoshal Typology,” Journal of International Business Studies, 1993, Vol. 24, No. 3, pp. 449-464. Reprinted in Marketing Insights for the Asia Pacific, Singapore: Heinemann Southeast Asia, 151-166. [20] Moore, Karl, “A Strategy for Subsidiaries: Centres of Excellences to Build Subsidiary Specific Advantages,” Management International Review, July 1, 2001. [21] H. V. Perlmutter, “The Tortuous Evolution of the Multinational Corporation,” Columbia Journal of World Business, Vol. 4, 1969, pp. 9-18. [22] M. E. Porter, Competition in Global Industries, New York, 1990 : Harvard Business School Press. [23] C. K. Prahalad and G. Hamel, “The Core Competence of the Organization,” Harvard Business Review, Vol. 68, 1990, pp. 79-91. [24] R. Ramamurti and Singh, “Emerging Multinationals in Emerging Markets,” Cambridge University Press, 2009. [25] D. Sullivan, “Measuring the Degree of Internationalization of a Firm,” Journal of International Business Studies, Vol. 25, 1994, pp. 325-342. doi:10.1057/palgrave.jibs.8490203 [26] Unctad, WORLD INVESTMENT REPORT 2012. Towards a New GeNeraTioN of investment policies. United Nations Publication, 2012. [27] Williamson O. (1981), The Economic Institutions of Capitalism, New York, Free Press. [28] V. Zander and B. Kogut, “Knowledge and the Speed of the Transfer and Imitation of Organizational Capabilities: An Empirical Test,” Organization Science, Vol., 6, 1995, pp. 76-91. doi:10.1287/orsc.6.1.76