Subsidiary influence on strategic behaviour in MNCs: an empirical study

A subsidiary in a multinational corporation (MNC) has assets in the form of specific relationships. It is argued that the subsidiary's network is of vital importance for the development of new products, production processes and for technological information in the subsidiary. The resources created in the subsidiary's network can, if they are needed by other units within the MNC, make it possible for the subsidiary to influence the strategic behaviour of the MNC. The empirical data presented are collected from 97 subsidiaries of 20 global divisions in Swedish MNCs, and we have interviewed over 300 managers. The 626 important relationships studied give support for the notion that they are of vital importance for technological development in the subsidiaries. The subsidiary's technological position is operationalised as the subsidiary's roles as giver and receiver of technological development in the MNC. The test provides support for the opinion that the more a subsidiary is a giver, the greater its possibilities to influence the strategic behaviour in the MNC.