Subsidiary Strategy - Responsibility, Strategic Choice and Performance



Year of publication 2013
Type Article in Proceedings
Conference Advances in Business-Related Scientific Research Conference
MU Faculty or unit

Faculty of Economics and Administration

Field Management and administrative
Keywords Multinational Subsidiary, Subsidiary Strategy, Performance
Description Research focused on subsidiaries has answered lot of questions so far, but has also brought many issues that require further investigation. One of them is subsidiary strategy – as multinationals grow, subsidiaries are becoming more and more important and they are involved in strategic decisions very often. The aim of this article is to explore important aspects of subsidiary strategy, particularly the strategic-making process, the strategic choice, performance implications and relations between these variables. In this paper I explore these issues through a survey of 190 multinational subsidiaries in the Czech Republic. I find that in majority of cases subsidiary management can participate in strategy-making process. Nevertheless, the most successful subsidiary strategies are chosen by an entity superior to subsidiary, which is an office between headquarter and subsidiary. Such an entity might have unique knowledge that enables to choose the right strategy for subsidiary which balances global integration and local responsiveness.

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