Strategy shifts in MNC subsidiaries

Article Abstract:

An extension of the Jarillo and Martinez (1990) subsidiary-specific framework was formulated to examine strategic shifts in the subsidiaries of multinational corporations. The framework was tested using a sample of 171 manufacturing subsidiaries in the UK. This analysis confirmed the three types of subsidiary strategy proposed by Jarillo and Martinez. However, in addition to active, receptive and autonomous subsidiaries, this study found a fourth type referred to as the 'quiescent subsidiary,' which is characterized by low integration and low responsiveness. This new strategy may not be voluntarily recognized by a subsidiary or consciously deployed by corporate headquarters. Implications of the findings are discussed.

International business enterprises, Multinational corporations, Strategic planning (Business)

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Evolution of multinational strategy: evidence from Scottish manufacturing subsidiaries

Article Abstract:

The integration/responsiveness grid developed by Prahalad and Doz was given a central place in recent research into alternative conceptual approaches to subsidiary strategy. The validity of the grid was assessed through the use of information gleaned from a postal survey of 121 manufacturing multinational concerns based in Scotland. The evidence collected provided some support for the paradigm, with signs of a trade-off between responsiveness and coordination, although not between responsiveness and integration.

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Second stage internationalisation: evidence from MNC manufacturing subsidiaries in the UK

Article Abstract:

The UK manufacturing subsidiaries of multinational corporations do not work with other subsidiaries to develop a common international marketing strategy. Firms with less than 16% overseas sales often only make 33% of the products they sell. UK companies with more than 50% export sales make about 45% of their own products and tend to work with others to develop a group marketing strategy.

Administration of General Economic Programs, Intnl & Trade Administration, United Kingdom, International trade, Export marketing

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