International Subsidiary Management and Environmental Constraints: The Case for Indigenization

Abstract

We use insights from resource dependence, institutional theories and social movement theories to examine the indigenization of subsidiary management in the multinational company (MNC). We discuss the effects of interdependence with local organizations, access to critical resources, and MNC legitimacy in the host country on the indigenization of subsidiary management. We consider the impact of local and extra-local social movement activity as well as the local political opportunity structure in the host country. The organizational variables in the framework include international strategy and experience. We suggest implications for further international management research and practice involving the operation of foreign subsidiaries.

Citation

Tihanyi, L., Swaminathan, A. and Soule, S.A. (2012), "International Subsidiary Management and Environmental Constraints: The Case for Indigenization", Tihanyi, L., Devinney, T.M. and Pedersen, T. (Ed.) Institutional Theory in International Business and Management (Advances in International Management, Vol. 25), Emerald Group Publishing Limited, Leeds, pp. 373-397. https://doi.org/10.1108/S1571-5027(2012)0000025021