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Technological University Dublin

Articles

2010

Subsidiary

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Full-Text Articles in Business

From Federations To Global Factories: Assessing The Contribution Of The Subsidiary Middle Manager In Today’S Mne, Donal O'Brien, Pamela Sharkey Scott, Pat Gibbons Jan 2010

From Federations To Global Factories: Assessing The Contribution Of The Subsidiary Middle Manager In Today’S Mne, Donal O'Brien, Pamela Sharkey Scott, Pat Gibbons

Articles

The evolution of MNEs (Multinational Enterprises) from rigid and hierarchical structures to more distributed authority and autonomy led to the theoretical justification for conceptualising them as a federative rather than unitary organisations (Ghoshal and Bartlett, 1990). Fundamental to the Federative MNE is the suggestion that subsidiary units, through their own actions, can modify the power base and influence MNE strategy ‘from below’ (Andersson et al., 2007). Considerable research highlights the potential of subsidiary units for knowledge creation and initiative (Birkinshaw, 1997, Rugman and Verbeke, 2001, Williams, 2009), but to date it has failed to confirm that MNEs actually operate as …