Authors: Muhammad Mustafa Raziq; Gabriel R.G. Benito; Paul Toulson; Omer Farooq Malik; Mansoor Ahmad
Addresses: NUST Business School, National University of Sciences and Technology (NUST), H-12, Islamabad, Pakistan ' Department of Strategy and Entrepreneurship, BI Norwegian Business School, Oslo, Norway ' School of Management, Massey University, Palmerston North, New Zealand ' Department of Management Science, COMSATS University Islamabad, Park Road, Islamabad, Pakistan ' Department of Management Science, COMSATS University Islamabad, Park Road, Islamabad, Pakistan
Abstract: This study examines the roles and strategies of foreign-owned subsidiaries in New Zealand, with the aim to develop an improved classification of subsidiaries of multinational enterprises (MNE). Previous research has proposed a range of subsidiary classifications indicating various ways in which subsidiaries can be distinguished. There are, however, still concerns that critical contingencies, such as the subsidiary development capacity and its own strategy, remain ignored. This study addresses these gaps by drawing on network theory to develop a novel and overarching subsidiary classification framework. Based on the framework, it empirically derives a three-part subsidiary classification: entrepreneurial, constrained autonomous, and constrained. The empirical classification is based on data from 429 foreign subsidiaries in New Zealand. Implications for theory, public policy, and management practice are made.
Keywords: subsidiary role; subsidiary strategy; subsidiary development; subsidiary classification; MNE management structure.
European Journal of International Management, 2019 Vol.13 No.6, pp.757 - 784
Received: 13 Oct 2017
Accepted: 19 Mar 2018
Published online: 29 Aug 2019 *