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The strategic impact of external networks: subsidiary performance and competence development in the multinational corporation
Abstract
This paper explores the importance of relational embeddedness in external networks as a strategic resource for performance and competence development in multinational corporations (MNCs). Two different types of relational embeddedness at the subsidiary level—business embeddedness and technical embeddedness—are proposed to have an influence on the subsidiary's market performance as well as its importance for competence development in the MNC. Using data on 97 Swedish MNC subsidiaries, five hypotheses are tested in a LISREL model analysis. The results suggest that technical embeddedness has a positive impact on both the subsidiary expected performance and its role in the development of products and production processes in the MNC. Indirectly, through external technical embeddedness, external business embeddedness also influences the sister units' product and process development and subsidiary market performance. Copyright © 2002 John Wiley & Sons, Ltd.
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Fifty 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
Five decades of research on foreign direct investment by MNEs: An overview and research agenda
Paul, J., & Feliciano-Cestero, M. M. (2021) · Journal of Business Research · doi:10.1016/j.jbusres.2020.04.017 · Cited by 401
Knowledge connectivity: An agenda for innovation research in international business
Cano-Kollmann, M., Cantwell, J., Hannigan, T. J., Mudambi, R., & Song, J. (2016) · Journal of International Business Studies · doi:10.1057/jibs.2016.8 · Cited by 367
Global value chain governance: A relational perspective
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Metadata
- Authors
- Andersson, U., Forsgren, M., & Holm, U.
- Venue
- Strategic Management Journal
- Publisher
- Wiley
- Published
- 2002-09-24
- Volume
- 23
- Issue
- 11
- Pages
- 979-996
- ISSN
- 0143-2095 (ISSN-L)
- 1097-0266
- OpenAlex
- W3193438973
- Cited by
- 996
- References
- 8
- FWCI
- 43.34
- Type
- journal article
- Language
- en
- Open access
- closed
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.