TY  - JOUR
AB  - Purpose The aim of this paper is to investigate how multinational enterprise (MNE) subsidiary capabilities are influenced by the firm-specific advantages (FSAs) of the parent company, as well as by cultural and geographic distance between the home and host country.Design/methodology/approach This paper assesses how the effects of the parent FSAs, cultural distance and geographic distance on subsidiary capabilities vary for different value-chain activities, with an empirical application to 60 foreign subsidiaries operating in Canada.Findings This paper uncovers distinct, three-way interaction effects among parent-level FSAs, cultural distance and geographic distance for upstream versus downstream activities in the value chain.Originality/value We find that in special cases, high levels of distance can be positive for MNEs, in terms of driving the creation of stronger subsidiary capabilities.
VL  - 24
IS  - 2
SN  - 1525-383X
DO  - 10.1108/MBR-05-2015-0021
UR  - https://doi.org/10.1108/MBR-05-2015-0021
AU  - Verbeke Alain
AU  - Yuan Wenlong
PY  - 2016
Y1  - 2016/01/01
TI  - The impact of “distance” on multinational enterprise subsidiary capabilities: A value chain perspective
T2  - Multinational Business Review
PB  - Emerald Group Publishing Limited
SP  - 168
EP  - 190
Y2  - 2024/05/04
ER  -