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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.

One role of a foreign subsidiary within a multinational corporation's (MNC's) global portfolio is to connect the MNC to foreign customers. To examine this key customer contact point, this study aims to examine the linkages between local market conditions and strategic orientation, and how strategic orientation influences knowledge management capabilities of MNC subsidiaries, employing the Miles and Snow strategic orientation perspective.

A survey was conducted of 112 managers in foreign MNC subsidiaries in Croatia. Data were analyzed with both discriminant analysis and MANCOVA.

The results indicate that in highly dynamic and competitively intense markets, MNC subsidiaries primarily employ a Prospector orientation. Furthermore, the results indicate that there is a significant difference in knowledge management capabilities among subsidiaries depending on their strategic orientation, with the Prospector orientation most closely aligned with knowledge acquisition, knowledge conversion and knowledge application.

The findings highlight the importance of strategic orientation in MNC subsidiaries tailoring to local market conditions. The results suggest that MNC subsidiaries undertaking a Prospector strategic orientation develop greater knowledge acquisition, conversion and application capabilities.

This study conceptualizes the MNC subsidiary as a key marketing element of the global MNC whole and examines the nuanced relationships between the host environment and MNC foreign subsidiary strategic orientation as well as MNC subsidiary strategic orientation and knowledge management 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 author contributes to the theory of the multinational enterprise by examining subsidiary-specific capability in financial management, defined as the stock of knowledge and capability to plan, manage, control and direct financial resources effectively and efficiently, and the perceptions of subsidiary managers of host country financial development as drivers of export intensity (the share of sales that are exported) of foreign subsidiaries of multinational enterprises (MNEs). The author theorizes that subsidiary-specific capability in financial management is conceptually a valuable subsidiary-specific advantage and it is as important as other traditional competitive advantages, such as research and development and marketing intensity. Perceptions of subsidiary managers of host country financial development are argued to be largely related to the characteristics of the host country-specific advantages.

The author uses a survey dataset of the foreign subsidiaries of Western multinational enterprises (MNEs) together with other public data sources.

The author provides empirical evidence to support for these arguments that export intensity of MNE foreign subsidiaries depends on subsidiary-specific advantages and host country specific advantages.

The study broadens the understanding of the relationships between subsidiary-specific advantage in financial management, host country specific advantage, and export intensity of MNE foreign subsidiaries. In this way, the author makes an original contribution to new internalization theory by emphasizing the internal capability building of subsidiaries. The author discusses the implications of the findings for MNE foreign subsidiary managers, and policy makers because exporting is critical to the overall strategy of foreign subsidiaries, and it also contributes to the balance of trade and economic development of host countries where foreign subsidiaries operate.

This paper illuminates the distinction between individual and organizational actors in business-to-business markets as well as the coexistence of formal and informal mechanisms of coordination in multinational corporations. The main questions addressed include the following. (1) What factors influence the occurrence of personal contacts of foreign subsidiary managers in industrial multinational corporations? (2) How such personal contacts enable coordination in industrial markets and within multinational firms? The theoretical context of the paper is based on: (1) the interaction approach to industrial markets, (2) the network approach to industrial markets, and (3) the process approach to multinational management. The unit of analysis is the foreign subsidiary manager as the focal actor of a contact network. The paper is empirically focused on Portuguese sales subsidiaries of Finnish multinational corporations, which are managed by either a parent country national (Finnish), a host country national (Portuguese) or a third country national. The paper suggests eight scenarios of individual dependence and uncertainty, which are determined by individual, organizational, and/or market factors. Such scenarios are, in turn, thought to require personal contacts with specific functions. The paper suggests eight interpersonal roles of foreign subsidiary managers, by which the functions of their personal contacts enable inter-firm coordination in industrial markets. In addition, the paper suggests eight propositions on how the functions of their personal contacts enable centralization, formalization, socialization and horizontal communication in multinational corporations.

The purpose of this paper is to investigate how the implementation of headquarters-originated employment practices affect multinational corporation (MNC) ability to exploit the value of organizational social capital of the acquired subsidiary.

The authors use qualitative insights collected over 16 years from a Danish company to illustrate how a foreign MNC’s interference with the balanced structure of relations, norms, and roles in a subsidiary jeopardized the value of existing social capital.

The authors argue that changes in the collective perception of employment practices create the collective response, constructive or destructive, resulting respectively in the gain or loss of the performance benefits arising from organizational social capital.

The authors suggest two guidelines and two general propositions for future research on the value of organizational social capital in international takeovers.

The results indicate that local management and employees could use organizational social capital as a unique feature of the local business system when competing with other subsidiaries in the same MNC.

The increasing number of strata property in Malaysia promotes the different usages of development under the integrated development, which comprise the different usages of owner groups. These owner groups may not enjoy all the common properties in the integrated development. Therefore, the purpose of this research is to identify the important to designate the limited common property for the owners who have the exclusive benefit on it. However, the establishment of the subsidiary management corporation and limited common property is less popular in Malaysia.

Hence, research should be carried out to identify the importance of the establishment of the subsidiary management corporation and enhancement for the establishment of subsidiary management corporation to increase the willingness of the owner to establish the subsidiary management corporation. Collective Action Theory likewise assists to increase the willingness of the owner in the establishment of the subsidiary management corporation. A sum of 100 owners in the integrated development and 187 stratified property professionals are the respondents in this research, by applying the random sampling method.

Results indicate the problems that occur in the integrated development is the complexity management in integrated development, followed by the usages of the common property. Therefore, Collective Action Theory could ensure the effectiveness of the establishment of the subsidiary management corporation in the aspect of social rights, resources, governance groups and participants.

This paper provided an overview of the management circumstance in the integrated development of Malaysia and discussed some effective enhancements to promote the sustainable formation of the subsidiary management corporation or two-tier management corporations.

Despite the growing economic importance of Africa, the region has received scant attention in the international human resource management literature. The purpose of this paper is to address the gap in examining human resource management (HRM) practices in Western multinational enterprises’ (MNEs) subsidiary operations in Ghana, which is a significant foreign direct investment market in Africa. Focusing on recruitment and selection, training and development, performance management, and rewards management viewed through the ability, motivation and opportunity (AMO) framework, the research emphasizes that effectiveness of the MNEs’ cross-cultural operations has necessitated embracing localization across a range of practices in accordance with the Ghanaian cultural landscape and specificities.

The paper draws on 37 in-depth interviews with managers and employees in eight subsidiaries of British, European and US MNEs in Ghana. Interviews were conducted in 2015 in three locations – the capital city Accra, Tema (in the south) and Tamale (in the north).

The research reinforces earlier literature emphasizing the importance of paternalism and family and to a lesser extent patronage, but presents new findings in highlighting the erstwhile unexplored role of local chiefs in influencing HRM practices in Western MNEs in Ghana. Utilizing the AMO framework, this paper highlights practices within each HR area that influences performance through impact on employee AMO.

The research informs MNE managers about the strategic importance of observing local cultural practices and designing appropriate strategies for ensuring both operational effectiveness and successful cross-cultural collaboration with local managers and employees in Ghana. It is suggested that if managers implement practices that foster and enhance employee AMO, subsidiaries may benefit from employee potential and discretionary judgment.

This paper contributes to a dearth of literature on HRM practices of Western MNEs’ subsidiaries in Africa by examining the extent to which MNEs strategically localize their practices to accommodate specificities of the host country cultural context and operate successfully.

This paper aims to contribute to the multinational company (MNC) literature by studying the diffusion of a management idea within an MNC and its interaction with the MNC’s corporate immune system (CIS).

The qualitative single case study draws on evidence of how a management idea augments within an MNC and changes its development practice.

The study identifies four phases of the diffusion process and presents the interaction between the management idea and the CIS in each phase.

The more subsidiaries within an MNC that take the initiative to adopt a management idea, the harder will it become for the headquarters (HQ) to reject it. Thus, to ensure that changes in management practices are based on informed and, ideally, deliberate decisions, managers should critically evaluate management ideas immediately at inception.

The study breaks new ground by explaining how the CIS reacts to the diffusion of management ideas in MNCs.

This article is concerned with “internal” corporate governance i.e. corporate governance within the firm – in particular the delegation of decision‐making powers from the parent company board to the boards of divisions and subsidiaries. In fast‐moving businesses, companies must respond quickly to changes in technologies and markets and with this in mind international businesses are tending to delegate substantial discretion to the boards and management teams of subsidiaries. In researching divisionalized companies in financial services, electronics and process manufacturing the author discovered that much of the business was carried on among subsidiaries through a network of contracts and the resources which were held at the center were often made available to subsidiaries through license agreements. Such complex arrangements present parent boards with difficult issues which must be resolved if their companies are to act entrepreneurially. For example: what powers should be reserved for the parent board and what decisions should be delegated to subsidiary boards? Also should subsidiary companies have autonomous boards with independent non‐executive directors?