The relevance of Subsidiary initiative for late-movers: an analysis of the Brazilian Multinationals

Informações

Código: ESO1864
Divisão: ESO - Estratégia em Organizações
Tema de Interesse: ESO-B - Gestão Internacional

Autores

Felipe Mendes Borini, Maria Tereza Leme Fleury, Afonso Fleury, Moacir de Miranda Oliveira Junior

Resumo

The purpose of this paper is to analyze the role of subsidiaries of Brazilian MNEs - BrMNEs,investigating the conditions under which they develop initiatives vis-à-vis their headquarters.For this, a survey was carried out in a sample of 65 subsidiaries of 29 BrMNEs. The mainoutcome is that Initiative at the subsidiaries of BrMNEs is still limited. Even though thesubsidiaries are characterized by high Integration with their headquarters and highEntrepreneurial Orientation, those are not determinants of subsidiaries’ Initiatives. Actually,the main determinants of subsidiaries’ initiatives are Local Context and Business Networkingin the host country. This apparent paradox may be explained by what we are calling as‘rebellious subsidiaries’, those which take initiatives based on their business environmentconnections (Local Context and Business Network), regardless of their headquarters’ consentor delegation of Autonomy (ranked low in the survey). This is supported by the data analysis,which shows that the subsidiaries have high entrepreneurial capacity, combined with lowAutonomy granted by their headquarters. These results, based on a survey, are expected tocontribute to the literature in the area of subsidiary strategy.

Abrir PDF