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The aim of this study is to explore how springboard subsidiaries affect the psychic distance between the headquarters (HQ) of multinational companies (MNCs) and a distant target region. The study applies a single case study methodology to analyse a springboard subsidiary located in Spain that helps its German HQ to pursue opportunities in a psychically distant Latin American region. The findings suggest that springboard subsidiaries help MNCs to reduce the perceived psychic distance between their HQ and a target region due to (1) their intermediate psychic proximity in both directions (i.e. to the HQ and the target region) and (2) their location outside the target region, which makes them somewhat ‘impartial’ and not involved in intra-regional conflicts; the study also shows that the sum of psychic distance stimuli between HQ’s home country –springboard subsidiary’s country and springboard subsidiary’s – Latin American countries is actually smaller than the direct psychic distance between HQ’s home country and Latin American countries. No previous studies have explored the effect of springboard subsidiaries on psychic distance.

The aim of this study is to explore the drivers of the evolution of a subsidiary’s strategic role from an ordinary subsidiary into a springboard subsidiary in multinational corporations, paying special attention to the role of subsidiary management in this transformation.

The authors apply a case study methodology to analyse the transformation of three Spanish subsidiaries of European multinational companies into springboard subsidiaries to pursue opportunities in the Latin American region.

The results present evidence that the development of a springboard subsidiary’s role is influenced by a set of preliminary factors that include: (1) the coincidence of a favourable economic change in the target region of expansion and unfavourable market conditions in the springboard subsidiary’s home market; (2) location-specific advantages of a subsidiary that allow it to develop unique capabilities, such as the ability to reduce the psychic distance between the headquarters and target region, to balance intra-regional conflicts within the target region, and to effectively transfer knowledge from the headquarters to the target region; and (3) micro-political headquarters-subsidiary negotiation processes as a result of the subsidiary’s strong initiative, peculiarities of the structure of a multinational company, and a strong dependency of the headquarters on the subsidiary’s unique capabilities.

The study contributes to the International Business literature by providing an in-depth analysis of the evolution of springboard subsidiaries and explaining how ordinary subsidiaries located in saturated markets can trigger organisational change and achieve the extension of their strategic role.

The purpose of this paper is to provide empirical evidence regarding the springboard regionalization strategy implemented by multinationals entering Latin America and the organizational networks developed to serve this end.

Using the organizational network approach, a typology is developed to explain the Springboard network. Quantitative analysis is used, in the form of logistic binary regression, to study these networks composition.

From a sample of 154 subsidiaries extracted from the AMADEUS intelligent database, three categories for multinational’s networks are created, with the Spanish subsidiary acting as the leader: strategic centers (SCs), administrative centers (ACs) and regional headquaters (RHQs). Findings provide evidence of cultural features, industry behavior and the multinational’s size and entry mode influence these networks organization.

It is proposed that culture and historical ties have evolved together and management scholars should be aware of this phenomenon. Specific limitation that this study exhibits is the data provided by AMADEUS and the fact that R&D information for both the Spanish and the Latin American subsidiary were not available.

Staffing composition and expatriate corporate policy should consider the springboard effect to manage springboard networks.

Industries and authorities in all countries involved should be aware of their role in MNC strategies for regional expansion.

It is argued that a network of subsidiaries within the multinational can participation in the springboard behavior, which is determined by the culture that the multinational originates from, as well as the Spanish culture, creating a particular type of leadership.

The springboard theory for multinational enterprises and the upward spiral model address the expansion of emerging countries’ multinational enterprises (MNEs) abroad as a set of resource-building stages. This paper aims to analyze this model by qualifying knowledge flows in three domains: learning effects, transfer flows and global connections.

The authors use 2018 data from the ORBIS database to identify evidence concerning the springboard MNE (SMNE) phenomenon. The authors select MNE firms from 93 emerging economies with presence in 71 developed and 93 developing countries. In addition, the authors differentiate between the levels of technological intensity of emerging market MNEs’ sectors.

The results highlight the existence of learning processes taking place in subsidiaries and feeding back into parent firms, as well as the existence of capability transfer from home to host units.

The main contribution is the addition of empirical evidence on the SMNE and specifically the upward spiral model, considering the micro-level and the productivity differences between parent firm and subsidiaries.

This paper investigates the effect of business environment distance on innovation performance of emerging market multinational enterprises (EMNEs) and explores the mediating effect of absorptive capacity between the two, and it further analyzes the moderating effect of skilled migrants in the relationship between business environment distance and absorptive capacity.

An empirical analysis based on a fixed effect model is conducted using data of Chinese MNEs listed on the Shanghai and Shenzhen Stock that expand into developed markets from 2011 to 2018.

The results suggest business environment distance positively affects the innovation performance of EMNEs, and can enhance innovation performance by affecting absorptive capacity of EMNEs. In addition, skilled migrants strengthen the relationship between business environment distance and absorptive capacity of EMNEs.

Chinese MNEs should fully exploit business environment distance to acquire the technology needed for innovation activities, and strengthen absorptive capacity to maximize the benefits from innovation. Chinese government needs to strengthen the construction of skilled migrants to facilitate knowledge and technology transfer.

Combining springboard theory and institutional theory, this paper integrates macro and micro perspectives to explore whether and how business environment distance affects innovation performance of Chinese MNEs. The paper provides a good theoretical basis and important practical reference value for enhancing the technological innovation capability of Chinese MNEs and the overall technological innovation level of China.

We aim to identify the factors that led to a Belarusian firm’s initial fast internationalization and the reasons for slowing the process down thereafter.

The chapter is based on a single case study. We collected the data via 9.5 hours of interviews and also used the firm’s annual reports.

The case firm’s internationalization was “pushed” by the Belarusian economic environment – especially, the fear of governmental takeover. The founders felt that internationalizing would be less risky than fully focusing on their domestic market. It was also “pulled” by growth opportunities on foreign markets and also a founder’s personal contacts. The slowdown of the firm’s internationalization was caused by the lack of foreign market knowledge and other resources.

Despite of slowing the internationalization down and experiencing several fluctuations in foreign activities, the founders are satisfied with the firm’s internationalization. Thus, managers should not automatically regard such internationalization a failure: adjustments in the firm’s internationalization pace can be justified as it has to react to the changing economic and business environment.

The chapter shows that a born global’s internationalization can slow down, it can use its subsidiaries as bases for further gradual internationalization, and it can also experience fluctuations in internationalization.

Emerging market multinational enterprises (EMNEs) have consolidated their global presence recently, challenging existing international business (IB) theories. One of their most significant characteristics has been the prevalence of strategic asset-seeking (SAS) mergers and acquisitions (M&As) targeting firms in developed countries. Such SAS M&As have been ascribed to the aim of acquiring or augmenting firm-specific advantages, rather than exploiting existing advantages. A literature review is needed to synthesize the growing number of academic studies and to contribute to ongoing theoretical developments on EMNEs' catch-up strategies.

The authors follow a standard systematic literature review approach. The authors collate academic studies on EMNEs' SAS M&As in developed markets published between 2000 and mid-2020, structuring the analysis using the logic of antecedent, process and performance outcomes.

The authors present recent research trends in terms of year, journal, theories and methods. The authors synthesize and analyze existing knowledge on EMNEs' SAS M&As and identify remaining gaps to suggest future research directions.

The review contributes by focusing on the key argument of current EMNE research – SAS M&As. By providing the first focused review on this topic, it provides a basis for further research on EMNEs' SAS M&As.

In this study, the authors argue that the host environment of subsidiaries may affect subsidiary initiative via relationships with two stakeholders: public and private stakeholders. On the one hand, the public relationships and private relationships of subsidiaries may affect their tendency to demonstrate initiative. On the other hand, including technological innovation as a moderating effect supports the tendency towards subsidiary initiative.

This study obtained the data through a survey of 216 subsidiaries in China; chief executive officer or senior managers were selected as the data collection sources. AMOS analysis was used to address sophisticated data analysis issues.

Findings based on samples from China support these arguments. The findings contribute to the literature by highlighting that different types of subsidiary initiative coexist within subsidiaries and by accounting for the external environmental relationships and technological innovation.

What determines subsidiary initiatives in the host market? We find that (1) public relationships directly influence subsidiary initiatives, and (2) this effect is moderated by technological innovation. The theoretical framework shows that this interaction arises from the separate impacts of innovation characteristics, especially a foreign subsidiary's interest in entrepreneurial action affecting both growth and maintenance initiatives. In summary, this article concludes that initiatives are not simply the activities of subsidiaries. The authors hope that the strong explanatory and predictive power of these external factors and technological innovation are further enhanced when these concepts are integrated with the charters of internationalizing MNEs.

This study aims to discuss not only the relationship between performance and cooperation but also discusses whether a subsidiary should prioritize performance above cooperation or whether a subsidiary should prioritize cooperation above performance. In addition, because the headquarters-subsidiary relationship influences the subsidiaries, the perception gaps (PGs) between headquarters and subsidiaries are taken as moderators to explore when there are perception differences between headquarters and subsidiaries and the effect on the relationship between subsidiaries’ cooperation (SCO) and performance (SP).

This study obtained the data through a survey of 170 subsidiaries in China; chief executive officer or senior managers were selected as the data collection sources. AMOS analysis was used to address sophisticated data analysis issues.

The empirical evidence indicates that subsidiary capabilities have direct impacts on SCO and SP. In addition, SCO and performance have mediating effects. More specifically, SCO has a full mediating effect and SP has a partial mediating effect. For the moderating effects, the PG weakens the effect of SCO on SP.

This study contributes to the literature on subsidiary capabilities by offering a headquarters-subsidiary relationship model. As both the conceptual and empirical research studies on this topic are still underdeveloped, the study provides fresh insights into collaborative management and offers significant theoretical and managerial implications. Specifically, this study focuses on the impacts that subsidiary capabilities and PG have on cooperation and performance.