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International Business

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Technological University Dublin

2011

Federative

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Emerging Threats For Mnc Subsidiaries And The Cycle Of Decline, Pamela Sharkey Scott, P. T. Gibbons Prof Jan 2011

Emerging Threats For Mnc Subsidiaries And The Cycle Of Decline, Pamela Sharkey Scott, P. T. Gibbons Prof

Articles

Purpose – Subsidiary units have traditionally feared relocation of their activities to lower-cost locations. The authors identify other emerging threats which are changing how multinational corporations (MNCs) manage their subsidiary units, and develop a cycle of subsidiary decline demonstrating how these threats can undermine a subsidiary's position within the MNC.

Design/methodology/approach – The paper presents the results of a survey targeted at over 1,100 subsidiary CEOs of MNCs located in Ireland, a program of in-depth interviews of 24 subsidiary CEOs/directors, and a review of the literature relating to MNC and subsidiary management, are combined to identify emerging threats to subsidiary …