A Strategy for Subsidiaries: Centres of Excellences to Build Subsidiary Specific Advantages (1)

摘要: Abstract * This paper discusses the construct of subsidiary specific advantages (SSAs), which are central to how a captures international mandates. SSAs constitute an extension eclectic paradigm. It suggests centres excellence (CoE) as potentially important mechanism for develop SSAs. An analysis survey 203 subsidiaries foreign multinationals demonstrates support contention. Key Results presents evidence new level MNE advantage, Introduction How do non-dominant economies prosper within globalising world? Multinational Enterprises often play significant roles in these economies, one strategy is countries earn global or mandates, whereby their takes broader and more strategic role network multinational national enterprise. According recent research, growing number enterprises (MNEs) expanding beyond traditional downstream activities, such sales, service assembly, encompass upstream activities research development (R&D), component production, marketing (Bartlett/Ghoshal 1989, Jarillo/Matinez 1990, Gupta/Govindarajan 1991, Forsgren/Holm/Johanson 1992, Moore 1995, Birkinshaw/Hood 1997, 2000). activity has grown alongside increasing adoption strategies by parent MNEs, both deliberate action on part parent, well themselves (Birkinshaw/Fry 1998). also consistent with movement from exploitation home-based firm-specific (FSAs) creation dissemination knowledge MNE, innovation become reasons being (Kogut/Zander 1993). The most advanced case this expansion Global Subsidiary Mandate (GSM). occurs when local acts worldwide centre R&D, manufacturing, sales product (Rugman/Bennett 1982, Roth/Morrison 1993, Moore/Heeler Following Etemad Dulude's view (1996) does not suggest that perform all but it decision-making they control would generally delegate vast majority realisation sister units MNE. At below GSMs International Mandates (ISMs), where R&D and/or manufacturing product. key difference between GSM ISM scope mandate, dimensions geographic functional area breadth mandate. Figure 1 typology six missions. [FIGURE OMITTED] ways measuring falls Mission Grid based proportion development, market markets served, responsibilities, carried out subsidiary. In 3 grid only imports. Its mandate limited its boundaries little authority. 6 again responsibilities. However, cell have some authority, provide content value chain allowing degree localisation product/service provided home country. areas 2 5 regional With growth regionally integrated economy (Rugman 2000) begun mandates span borders (i. …