Subsidiary‐specific advantages in multinational enterprises
Abstract
Abstract This paper discusses the internal patterns of competence building in the multinational enterprise (MNE), with a focus on the creation of capabilities in its foreign subsidiaries. We present a new framework to synthesize 10 types of MNE–subsidiary linkages leading to capability development. We find that several of the 10 capability development processes are associated with subsidiary‐specific advantages. We discuss the process of subsidiary‐specific advantage development within the organizational structure of the MNE when it is a differentiated network of dispersed operations. Copyright © 2001 John Wiley & Sons, Ltd.
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Firm-specific assets could arise anywhere in the MNE.
“Rugman and Verbeke (1992, 2001, 2003) also recognized quite properly that firm-specific assets could arise anywhere in the MNE.”
From A dynamic capabilities-based entrepreneurial theory of the multinational enterprise (2014) · cites this paper as Rugman and Verbeke, 2001
The principal limits on corporate globalization, when endogenous, generally stem from bounded rationality, bounded reliability, and failure to build an organizational setting that supports value creation; these worsen as geographic and product scope expands.
“The main constraints on corporate globalization have been documented in a large and wide-ranging literature, and to the extent that these constraints are endogenous, they can usually be reduced to challenges of bounded rationality, bounded reliability, and the inability to create an organizational context conducive to value creation in its entirety, all of which become exacerbated as the firm”
From The future of international business research on corporate globalization that never was… (2018) · cites this paper as Rugman & Verbeke, 2001
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A perspective on regional and global strategies of multinational enterprises
Rugman, A. M., & Verbeke, A. (2004) · Journal of International Business Studies · doi:10.1057/palgrave.jibs.8400073 · Cited by 1,662 · see citing works
Self-citationA dynamic capabilities-based entrepreneurial theory of the multinational enterprise
Teece, D. J. (2014) · Journal of International Business Studies · doi:10.1057/jibs.2013.54 · Cited by 1,300 · see citing works
“(cited in Kirkpatrick, 1998) “Getting it” requires strong dynamic capabilities.”
Rugman, A. M., & Verbeke, A. (2003) · Journal of International Business Studies · doi:10.1057/palgrave.jibs.8400012 · Cited by 581 · see citing works
Self-citationFifty Years of International Business Theory and Beyond
Rugman, A. M., Verbeke, A., & Nguyen, Q. T. K. (2011) · Management International Review · doi:10.1007/s11575-011-0102-3 · Cited by 429 · see citing works
Self-citationGlobal value chain governance: A relational perspective
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The Internalization Theory of the Multinational Enterprise: Past, Present and Future
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Global Sourcing of Services: Risk, Process and Collaborative Architecture
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Why do some multinational corporations relocate their headquarters overseas?
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- Authors
- Rugman, A. M., & Verbeke, A.
- Affiliations
- University of Oxford (GB)
- Corresponding author
- Rugman, Alan M.
- ORCID
- Verbeke, Alain
- Venue
- Strategic Management Journal
- Publisher
- Wiley
- Published
- 2001-01-29
- Volume
- 22
- Issue
- 3
- Pages
- 237-250
- ISSN
- 0143-2095 (ISSN-L)
- 1097-0266
- OpenAlex
- W1991567271
- Cited by
- 1,285
- References
- 4
- Citations by year
- 2026: 60 · 2025: 49 · 2024: 32 · 2023: 48 · 2022: 48 · 2021: 59 · 2020: 54 · 2019: 79 · 2018: 53 · 2017: 65 · 2016: 92 · 2015: 65 · 2014: 69 · 2013: 88 · 2012: 66
- FWCI
- 57.44
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Strategic Management Journal (publishedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Strategy and Management › International Business and FDI
- Social Sciences › Business, Management and Accounting › Strategy and Management › Innovation and Knowledge Management
- Social Sciences › Communication › International Student and Expatriate Challenges
- Keywords
- multinational corporations, foreign subsidiaries, capability development, competence development, network organizational structure
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