Chapter

Strategy and Management in MNE Subsidiaries

Julian Birkinshaw

in Oxford Handbook of International Business

Published in print August 2001 | ISBN: 9780199241828
Published online November 2003 | e-ISBN: 9780191596834 | DOI: http://dx.doi.org/10.1093/0199241821.003.0014
Strategy and Management in MNE Subsidiaries

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The first part of this chapter is a selective review of the last thirty years of literature on multinational enterprise (MNE) subsidiaries, which aims to provide a roadmap of the field by highlighting the various empirical and theoretical issues that have been studied. The second part of the chapter provides a more detailed examination of the issue of subsidiary strategy. For some people, the term subsidiary strategy is an oxymoron because they believe the subsidiary should be acting as an instrument of the MNE. For others (including the author), the idea that the MNE subsidiary has its own strategy is necessary if the MNE is to make effective use of its far‐flung network. This section provides a discussion of what exactly strategy means at the subsidiary level, and some insights into how it is being affected by changes in the business environment and in the strategic direction of MNEs as a whole.

Keywords: international business; literature reviews; management; multinational enterprises; strategy; subsidiaries

Chapter.  8613 words.  Illustrated.

Subjects: International Economics

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