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The purpose of this paper is to offer deeper insight into the relationship between a subsidiary’s internal integration in its manufacturing network and subsidiary-level operational performance by taking into account the country context of the respective subsidiary.

Subsidiary-level information is gathered using the sixth round of the International Manufacturing Strategy Survey, thus including 507 subsidiaries from 22 countries. Country context is operationalised using the Global Competitiveness Report published by the World Economic Forum.

The findings reveal that internal integration has a positive influence on operational performance improvement. Country context acts as a moderator on this relationship: subsidiaries in less developed countries are only able to improve their effectiveness (quality, flexibility, delivery), while developed country subsidiaries gain both effectiveness and efficiency (cost, time) benefits from internal integration.

The unit of analysis is the knowledge-receiving subsidiary without taking the characteristics of the sending unit or that of the whole network of subsidiaries into account. Based on the context-dependency of the integration-performance relationship found in this paper, a future research agenda is proposed including further factors (absorptive capacity, knowledge complementarity, organisational practices) that could influence this relationship.

Subsidiary managers in less developed countries should strive to acquire intra-network knowledge related to effectiveness, while managers in developed countries can expect both efficiency and effectiveness benefits.

A large-scale survey encompassing subsidiaries from both emerging and developed countries is used to offer deeper insight into the relationship between internal integration and performance. The paper provides a possible explanation for previous mixed findings on this relationship. The differentiation between efficiency and effectiveness performance shows that country context represents an important factor that moderates the integration-performance relationship.

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.

The paper identifies the factors that shape the intensity and perceived effectiveness of communications between heads of manufacturing units of multinational corporations (MNCs).

The paper is based on a survey of heads of MNCs’ manufacturing subsidiaries in Russia.

The authors found that the intensity of most inter-unit communication channels depends on the speed and magnitude of the changes experienced by manufacturing subsidiaries in products and production technologies. The assessment of the efficiency of a communication channel with high media richness strongly correlates to the intensity of its use.

Subsidiary managers are quickly mastering most easy-to-use channels (i.e. e-mail exchange, talking on the phone, reading corporate magazines) by themselves, but are minimizing their participation in time-consuming activities (i.e. corporate-wide and special conferences, arranging informal meetings with foreign peers) unless they have to manage rapid changes in products and production technologies. Thus, to intensify the voluntary use of inter-unit channels with high media richness, headquarters should instill in subsidiary managers the value of cooperation between manufacturing units. Moreover, the effectiveness of inter-unit channels with high media richness should be properly demonstrated to subsidiary managers to assuage their initial reluctance.

This paper presents communications between manufacturing units of multinational corporations not as the transfer of abstract knowledge but as routine processes of exchange of detailed information on valuable improvements of the existing practices and solutions to technical and organizational problems common in facility development and mastering new products.

This study examines the determinants of performance of foreign manufacturing subsidiaries in Japan. The study finds that a foreign parent’s size, the subsidiary’s age, and a complicated distribution system influence a subsidiary’s performance. There was little significant change in these determinants over a 20-year period. However, for subsidiaries that survived over the observation period of this study, some determinants changed. We also found that by forming joint ventures with Japanese firms, foreign firms can overcome the obstacle of distribution and circumvent the disadvantage of inexperience. Moreover, the mitigating effects of joint ventures vary, depending on the type of Japanese partner.

The purpose of this study is to explore the extent of relational and institutional pressures’ influence on both the motivation for and diffusion of corporate social responsibility (CSR) practices of multinational corporation (MNC) subsidiaries in the food industries in Indonesia.

This study uses qualitative approach, and the data were collected by interviewing CSR managers and investigating the CSR practices and the annual reports of six subsidiaries of food-manufacturing MNCs in Indonesia.

This study found that internal pressures within MNC organisations are the main drivers of their CSR practices. These finding were, then, refined to account for local cognitive and normative institutional pressures. It was also found that while regulation in a host country was critical to its subsidiary compliance, it did not contribute appreciably to the precise types of CSR practices. The (isomorphic) similarity of CSR patterns had less to do with the institutional pressures but more with sector- or field-level pressures in food manufacturing. Most MNC subsidiaries focused on issues such as agricultural or rural development (related to their supply chain) or health and nutrition (related to their core business).

This study focuses on a specific industrial sector (food and beverage manufacture); therefore, the isomorphic patterns could not be concluded as an influential effect of the institutional context of Indonesia; rather, they are due to sectoral- or field-level pressure in food and beverage manufacturing. To confirm this study results, a multi-sectoral involvement in future studies is suggested.

This study uses organisational dynamics and institutional theory to explore CSR adoption in multinational subsidiaries in Indonesia.

The purpose of this paper is to analyze the role of institutional distance and host country attractiveness in location determinants of Chinese Foreign investments in EU in the renewable energy sector, taking into account bilateral political and economic relations.

A firm-level Ministry of Commerce (MofCom) database of greenfield and non-greenfield Chinese investments abroad is used. A six fixed-effects logit analysis is performed.

Chinese firms tend to invest in EU countries with reduced rule of law; market affluence is an attraction factor for them, but they do not seem to be human capital asset-seekers. Countries with politically stable environment are most attractive to sales/services subsidiaries; while countries with good control of corruption, low trade barriers and encouraging foreign ownership are most attractive to manufacturing subsidiaries. A large market is the most attractive factor for R & D subsidiaries, and a rich market is the most attractive factor for manufacturing subsidiaries. Manufacturing subsidiaries are more technological asset-seekers. R & D subsidiaries are the most non-human capital asset-seekers.

The study extends the state of the art of the literature by developing a theoretical framework, grounded on the influence of host country institutional factors and on endowment of resources on the location choice of Chinese investors. Further variables should be included in the future (industrial specialization of host country, cultural distance, bilateral ties).

Policy implications are relevant. They are related both to outward foreign direct investment attraction policies and to Europe-China cooperation dialogue. With reference to attraction policies, as Chinese green firms are technological asset-seekers, more than human capital asset-seekers, EU countries interested in partnering with Chinese investors should develop specific measures targeting encouraging technology spillover. Even R & D subsidiaries should be tempted with technology-oriented measures. With reference to Europe-China cooperation, the paper findings support suggestions for a more active European position on foreign investments in key European energy sectors.

The paper is grounded on an improved theoretical model, tested through a unique Mofcom firm-level database. Originality lies in the fact that the authors provide a sectoral insight. The need for sectoral analysis is fundamental as Chinese industrial development and internationalization path vary extensively across industry, due to policy interventions, supportive measures and prioritized initiatives. Zhang et al. (2011, p. 229) found that – specifically – the energy sector is highly sensitive to host country institutional context, therefore Chinese foreign direct investment are more likely to be exposed to regulatory and competitive pressure compared to other industries.

This paper aims to investigate whether Japanese manufacturing multinational enterprises (MNEs) maintain local legitimacy in their host countries through adequate informing of local stakeholders with targeted corporate sustainability (CS) reporting.

The paper first identified specific CS activities that were considered important in four Association of Southeast Asian Nations host countries, through semi-structured interviews with 58 participants of 16 Japanese manufacturing MNEs. The degree of establishment of local legitimacy was then measured through the number of references made to these CS activities and other activities specific to the respective host countries in the CS reports of the MNEs across a five-year period.

The majority of MNEs in the sample were under-reporting items of specific interest to localhost country stakeholders potentially undermining the MNEs’ image. There were found to be differences on the topics published in CS reports compared to those mentioned in the interviews indicating potential issues with regard to internal communication between the subsidiary and headquarters offices.

A novel approach is taken to investigate the degree of local legitimacy established by MNEs through comparing the contents of interviews held at subsidiaries with their respective CS reports. This paper highlights the importance of considering MNE subsidiaries when addressing Target 12.6 of the Sustainable Development Goal 12: responsible consumption and production.

To analyse the scope of localization strategies and corresponding benefits of these strategies to subsidiaries of international companies in the automobile industry in Thailand.

The authors have adopted the case research method to investigate localization strategies of subsidiaries of seven companies (Toyota, Hino, Honda, Isuzu, DaimlerChrysler, BMW, and Auto Alliance) as well as 14 of their dealers and suppliers in Thailand. The information was gathered by conducting in‐depth multiple interviews with 120 local and expatriate employees at various levels in the organizations; by referring to annual reports, policy documents and internal reports of these companies; and by observation during plant visits.

Contrary to the belief that international companies implement localization strategies to simply match the local market environment, it was found that these companies implement a wide range of localization strategies to achieve multiple benefits. The paper identifies nine areas of localization: localization of strategic decision making; building and exploiting the local knowledge pool; deployment of local human resources; localization of R&D; localization of products; use of local supplier networks; adaptations to manufacturing processes; local deployment of subsidiary profits; and localization of corporate image. These localization strategies are not just based on the principle of “cost‐based localization” but are based on “value‐based localization.” These strategies work in tandem and create value through a system of multiple benefits, such as managements' ability to comprehend and deal with uncertainty in the operating environment; make informed decisions to respond to challenges in developing efficient local assembly and marketing systems; cost reduction; higher degree of commitments by local employees; product customization and acceptance; and greater brand equity and image as a good corporate citizen.

Based on concrete illustrations of seven companies, this study identifies nine distinct areas for planning and implementing localization strategies and their corresponding benefits. The managers of subsidiaries can benefit by focusing their localization efforts in these areas to gain maximum advantage from host country context and then translate these advantages into a competitive international strategy.

CEOs of subsidiaries in emerging markets can learn how to build and harness local advantages for global competitiveness by implementing a wide range of localization strategies.

The purpose of this paper is to examine the potential impact of the 2008 economic crisis on foreign direct investment (FDI), especially in the new member states of the European Union. Particular attention is paid to the activities of subsidiaries of multinational enterprises (MNE), which can follow different scenarios as a response to the crisis, including a reorganisation of their production systems, and a reduction or closure of activities.

The analysis is grounded on various streams of literature, including international business studies and research on transition. Evidence is derived from UNCTAD data, interviews and desk research. The method of descriptive analysis has been followed, combined with theoretical insights, conceptual discussions and case study evidence.

While the full magnitude and consequences of the crisis are yet to be extensively analysed, the authors' preliminary findings suggest that the response of MNE subsidiaries to the crisis hinges critically upon the type and the industry of such subsidiaries. Export platforms in automotive industries have been hardest hit. However, there are indications of the qualitative development of subsidiaries in other industries, despite the crisis, as well as growing attractiveness of new EU members FDI in services.

This paper is an explorative study on the impact of the crisis on subsidiaries. More academic research should be conducted to understand this phenomenon, especially when the full magnitude of the crisis can be assessed.

The authors' analysis points at important policy implications. The authors challenge the view that rising economic nationalism would be the right answer to the problems created by corporate restructurings. Further, the authors advocate selective host government support to subsidiaries, especially aimed at retaining R&D departments and skilled workforce.

So far, the global economic crisis has been analysed mostly in consultancy reports and in studies focusing on the macroeconomic impact. However, to the authors' knowledge, no academic study has examined the issue of MNE subsidiaries' responses to the crisis.

The purpose of this paper is to address intra-organizational communication between parent firms and foreign subsidiaries and examine how such communication effectively facilitates knowledge sharing between parent firms and their subsidiaries.

This study approaches the relationship between intra-organizational communication and the effectiveness of knowledge sharing from the viewpoint of foreign subsidiaries. The data have been collected from local managers in subsidiaries operating in Japan using a questionnaire survey. The hypotheses are tested by employing a robust regression model.

This study finds that intra-organizational communication between parent firms and foreign subsidiaries is positively associated with the effectiveness of knowledge sharing. The benefits from intra-organizational communication are greater for service firms than for manufacturing firms. Subsidiaries established through acquisition are found to enjoy a greater positive effect from intra-organizational communication than those established through greenfield investment.

The results of this study suggest that multinational corporations should facilitate intensive intra-organizational communication for knowledge sharing that can lead to the effectiveness of foreign subsidiaries. In particular, service firms should appreciate the value of communication. This study also indicates that foreign subsidiaries established through acquisition should promote communication with their parent firms for successful knowledge sharing.

This study demonstrates that the effect of intra-organizational communication on knowledge sharing differs among industries and among entry modes. This is the initial step to further investigations on the industry and the entry strategy effects of intra-organizational communication.