IESE Research Papers
No D/489:
Fighting for power: The strategy of global MNCs' subsidiaries
Carlos Garcia-Pont ()
and Fabrizio Noboa ()
Abstract: The purpose of this paper is to examine the relational
configurations of a subsidiary that belongs to a global industry such as
auto components manufacture. As global integration pressures are high in
this environment, there are pressures for centralization and some
subsidiaries are losing resources and capabilities to the benefit of
headquarters or other subsidiaries. Consequently, they may fight within the
MNC to retain control over certain resources and capabilities, mainly by
building strong relationships with local suppliers, providers, customers or
other units of the MNC that may reach global relevance. While previous
studies have identified the significance of networks as a metaphor for
understanding MNC structure, in this paper we attempt to show how analysis
of a subsidiary's networks of contacts can be a useful tool to identify the
role the subsidiary is playing in the multinational as a whole. It shows
how networks can be used by the subsidiary as a tool to proactively develop
a formulated strategy.
Keywords: subsidiary; relationship network; resource configuration; auto components; (follow links to similar papers)
21 pages, January 25, 2003
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