The Role of the Subsidiary in International Business : Functional Responsibilities in the MNE's Value Network

"Reflecting on the evolving organisation of multinational enterprises (MNEs) and their growing presence in international business, this book focuses on value creation by subsidiaries in transition economies, and uses Poland as an example. Drawing on internalisation and business network theory, the author analyses the role of the subsidiary with the aim of explaining the mechanisms of subsidiary functional specialisation and its operationalisation. The book presents an innovative model illustrating the determinants of the functional responsibilities of subsidiaries, whilst providing an empirical analysis of foreign subsidiaries in Poland. Addressing a vital topic in international business and management studies, this Palgrave Pivot will be useful for researchers, students and practitioners."--Provided by publisher Acknowledgments 5 Contents 7 List of Figures 8 List of Tables 9 Chapter 1: Introduction 10 References 18 Chapter 2: Functional Responsibilities of Subsidiaries: Theoretical Perspective 21 2.1 Internalization Theory 23 2.2 Business Network Theory 26 2.3 Competition for Functional Responsibilities 28 References 34 Chapter 3: Functional Responsibilities in Subsidiary Role Studies: Literature Overview 40 3.1 Subsidiary Functional Specialization in Resource- and Configuration-Oriented Subsidiary Role Studies 48 3.2 Subsidiary Functional Specialization in Responsibility-Oriented Subsidiary Role Studies 52 3.2.1 White and Poynter (1984) 53 3.2.2 Ferdows (1997) 55 3.2.3 Delany (2000) 58 3.2.4 Hogenbirk and Kranenburg (2006) 60 3.2.5 Rugman et al. (2011) 63 3.3 The Subsidiary Strategic Role Concept: An Integrated Approach Toward the Functional Responsibilities of a Subsidiary 65 References 68 Chapter 4: Determinants of Functional Responsibilities of Subsidiaries and Methodology of the Empirical Study 73 4.1 Determinants of the Functional Responsibilities of Subsidiaries: The Model 73 4.1.1 Distinct Capabilities and Functional Responsibilities of a Subsidiary 74 4.1.2 Initiative and Functional Responsibilities of a Subsidiary 76 4.1.3 Initiative and Distinct Capabilities of a Subsidiary 77 4.1.4 Internal Embeddedness and Initiative of a Subsidiary 78 4.1.5 Internal Embeddedness and Distinct Capabilities of a Subsidiary 79 4.1.6 Environmental Factors 80 4.1.6.1 External Embeddedness and Initiative of a Subsidiary 82 4.1.6.2 External Embeddedness and Distinct Capabilities of a Subsidiary 83 4.1.6.3 Supply Environment and Initiative of a Subsidiary 83 4.1.6.4 Supply Environment and Distinct Capabilities of a Subsidiary 84 4.2 The Operationalization of Variables 85 4.2.1 Functional Responsibilities of a Subsidiary 86 4.2.1.1 Value Chain Functions 86 4.2.1.2 Market Scope of a Value Chain Function 86 4.2.1.3 Sophistication Level of a Value Chain Function 87 4.2.2 Distinct Capabilities 87 4.2.3 Initiative 88 4.2.4 Internal and External Embeddedness 89 4.2.5 Supply Environment 90 4.2.6 Control Variables 90 4.3 Data-Gathering Process and the Sample 91 4.4 Descriptive Statistics 97 References 102 Chapter 5: Determinants of Functional Responsibilities of Subsidiaries: Empirical Verification 113 5.1 Functional Responsibilities of Subsidiaries: Scale of Diversity 114 5.2 Evolution of Subsidiary’s Functional Responsibilities 118 5.3 Model 122 5.4 Discussion and Recommendations 130 5.5 Limitations and Direction for Future Research 134 References 137 Index 141 Front Matter ....Pages i-xi Introduction (Marlena Dzikowska)....Pages 1-11 Functional Responsibilities of Subsidiaries: Theoretical Perspective (Marlena Dzikowska)....Pages 13-31 Functional Responsibilities in Subsidiary Role Studies: Literature Overview (Marlena Dzikowska)....Pages 33-65 Determinants of Functional Responsibilities of Subsidiaries and Methodology of the Empirical Study (Marlena Dzikowska)....Pages 67-106 Determinants of Functional Responsibilities of Subsidiaries: Empirical Verification (Marlena Dzikowska)....Pages 107-134 Back Matter ....Pages 135-137