TY - CHAP AB - Purpose – To explore the influence of autonomy on subsidiaries' development and transfer intensities and their interrelationship.Methodology/approach – We develop a theoretical model that we test on a sample of 85 innovation projects developed in 63 subsidiaries in 14 countries. The data were collected by personal interviews and analysed using the Partial Least Squares technique.Findings – Autonomy is an important driver of subsidiaries' innovation intensity although, surprisingly, we find no influence on transfer intensity. We confirm the positive relationship between subsidiary innovativeness and its role as provider of new competence to sister units within the multinational enterprise (MNE).Research limitations/implications – In line with previous studies, we can say that autonomy is a desirable result of subsidiary evolution. We can also suggest that overall subsidiary autonomy is beneficial not just to the subsidiary but to the rest of the MNE, since the more the subsidiary innovates the more related competence will be transferred. In other words, innovation efforts at subsidiary level are critical to sustain MNEs' overall competitive advantage.Practical implications – First, it seems that the more a subsidiary's innovativeness is fostered, the more transfers to other units will occur. Second, we have seen how autonomy is beneficial to the innovative activity of the subsidiary and that it does not seem to harm transfer intensity.Originality/value – Following studies that point out the potential trade-off between the output of development and transfer activities by subsidiaries, our research contributes by empirically testing the relationship between the intensities of subsidiary innovation development and transfer. VL - 6 SN - 978-1-78052-115-2, 978-1-78052-114-5/1745-8862 DO - 10.1108/S1745-8862(2011)0000006014 UR - https://doi.org/10.1108/S1745-8862(2011)0000006014 AU - Ciabuschi Francesco AU - Martín Martín Oscar ED - Alain Verbeke ED - Ana Teresa Tavares-Lehmann ED - Rob Van Tulder PY - 2011 Y1 - 2011/01/01 TI - Chapter 11 Effects of Subsidiary Autonomy on Innovation Development and Transfer Intensities T2 - Entrepreneurship in the Global Firm T3 - Progress in International Business Research PB - Emerald Group Publishing Limited SP - 251 EP - 273 Y2 - 2024/05/06 ER -