Managing the MNE subsidiary Advancing a multi-level and dynamic research agenda

Multinational enterprise (MNE) subsidiaries abroad are important organizations in their own rights. They typically hold some of the MNE’s most critical resources, and operate at the forefront of complex international environments. In this review, we identify and organize theoretical and empirical re...

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Bibliographic Details
Published in:Journal of international business studies Vol. 51; no. 4; pp. 538 - 576
Main Authors: Meyer, Klaus E., Li, Chengguang, Schotter, Andreas P. J.
Format: Journal Article
Language:English
Published: London Springer Science + Business Media 01.06.2020
Palgrave Macmillan UK
Palgrave Macmillan
Subjects:
Business and Management
Business Strategy/Leadership
Global economy
Globalization
Interfaces
International Business
International trade
Knowledge management
Local knowledge
Management
Multinational corporations
Organization
Research methodology
REVIEW ARTICLE
Subsidiaries
Technology
Theory
multinational enterprise (MNE) subsidiaries
subsidiary strategy
subsidiary innovation
subsidiary evolution
subsidiary management
review
ISSN:0047-2506, 1478-6990
Online Access:Get full text
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Summary:Multinational enterprise (MNE) subsidiaries abroad are important organizations in their own rights. They typically hold some of the MNE’s most critical resources, and operate at the forefront of complex international environments. In this review, we identify and organize theoretical and empirical research on subsidiary management based on over 600 articles in leading academic journals. We develop a conceptual framework that integrates complementary streams of theoretical and empirical research with the subsidiary as its focal unit of analysis. In particular, we review six lines of research on subsidiary scope, practices, knowledge management, engagement with local market and nonmarket actors, performance, and individuals within subsidiaries. We highlight theoretical perspectives that have contributed to, and been advanced by, research on MNE subsidiaries. Based on the review, we explore future research agendas, linking the contemporary research themes with two main thrusts. First, subsidiary management is a multi-level phenomenon that would benefit from more microfoundational research. Second, subsidiary management operates at key interfaces of technology paradigm shifts, and of disruptions in the political and institutional environment. Research into the dynamics of subsidiary management would thus enhance our understanding of international business in a volatile global economy.
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ISSN:0047-2506
1478-6990
DOI:10.1057/s41267-020-00318-w