Ulf Andersson

Malardalen University · School of Business, Society and Engineering

Research Summary: We provide a more granular and comprehensive approach to subsidiary evolution and enhance the understanding of the complexity of the sub-sidiary's evolution in the era of value chain fine-slicing. We extend Birkinshaw and Hood's model of general processes of subsidiary evolution into a model of functional evolutionary paths that r...

The disaggregation of value chains in multinational enterprises, particularly the dispersion of R&D activities to preferentially situated subsidiaries, has pushed forward the importance of research on subsidiary innovation capabilities. However, extant studies are mainly on a subsidiary level, and few consider the key individuals in the subsidiary...

The MNE’s proficiency sourcing knowledge across borders is its raison-d’être. The broad knowledge sourcing overcomes the liability of foreignness and facilitates competitive advantage. Understanding the processes of subsidiary learning in local environments and alliance partners and then sharing within the Multinational Enterprise (MNE) is of immen...

Challenges related to the complexity of overlapping multiple partner headquarters configurations, the resulting power and political tensions between headquarters, and the consequent effects of multiple interventions in subsidiary value‐creating activities remain an understudied phenomenon. We present a rich case study of how complex overlapping hea...

The pandemic crisis caused a severe shock to global value chains and led to supply shortages for complex medical goods such as respiratory ventilators. What followed were calls to reshore production for security, and the loss of efficiencies from foreign global value chain (GVC) operations for the multinational enterprise. This article merges inter...

This chapter discusses digital transformation in Multinational Enterprises (MNEs) from a strategic viewpoint and argues that the MNE headquarters’ digital transformation strategy can affect the influence of the MNE’s subsidiaries within the firm group. MNE digitalisation has different effects, depending on the emphasis on ‘high-tech’ or ‘high-touch...

[Forthcoming] Knowledge is critical to the survival of emerging economy multinationals (EMNEs), who are confronted by a lack of internal competitive capabilities and external challenges associated with diverse institutional environments. They thus must manage and orchestrate their knowledge globally for ultimate catch up. This article systematicall...

Using an in-depth qualitative longitudinal case study approach, we examine strategic asset and knowledge augmentation strategies of an advanced economy multinational enterprise (MNE). Our study is unique as it is contextualized in the knowledge-intensive pharmaceutical industry within the changing institutional landscape in India. And, in contrast...

Extant international business (IB) literature on Headquarter (HQ)-subsidiary relationships has established that where decision-making occurs, it influences a firm’s performance. Existing studies propose that the degree of autonomy in decision-making at subsidiary level is not the same for all value chain activities, paying more attention to upstrea...

Research Summary We explore the importance of the relational attributes, trust and commitment, and their association with subsidiary development after mandate loss. We examine how greenfield and acquired subsidiaries, through their interaction with headquarters and sister subsidiaries, develop relational attributes through mutual‐orientated adaptio...

Research summary Starting from the premise that firms need dynamic capabilities to adapt to changing environments, we discuss how multinational enterprises (MNEs) develop dynamic capabilities from internationalization. Unlike domestic firms that develop dynamic capabilities within one organizational system, MNEs are inherently multi‐level systems w...

Research Summary Upgrading and governance in GVCs have been understood mainly through studying the buyer–supplier transaction, where the supplier is typically an independent contractor from a developing economy. Little is known about how subsidiaries of MNEs can upgrade in a GVC, whose core activities are coordinated through the “hierarchy” governa...

Many manuscripts submitted to the Journal of International Business Studies propose an interaction effect in their models in an effort to explain the complexity and contingency of relationships across borders. In this article, we provide guidance on how best to explain the interaction effects theoretically within and across levels of analysis. Firs...

The complex nature of international business research, with its cross-country and multilevel nature, complicates the empirical identification of relationships among theoretical constructs. The objective of this editorial is to provide guidance to help international business scholars navigate this complexity and ensure that readers can trust their f...

Research Summary: Upgrading and governance in global value chains (GVCs) have been understood mainly through studying the buyer-supplier transaction , where the supplier is typically an independent contractor from a developing economy. Little is known about how subsidiaries of multinational enterprises (MNEs) can upgrade in a GVC, whose core activi...

Although the core concepts underlying IB and IHRM provide a common lexicon and epistemology, this commonality is often more implicit than explicit. We highlight not only the common ground but also the lack of critical dialogue between the two fields. This paper asks: What can each field learn from the other? What do scholars from IB learn from IHRM...

This study examines how subsidiaries in multinational corporations (MNCs) experience interactions with corporate headquarters. We conceptualize such interactions in terms of organizing costs, focusing on two key types of costs: bargaining costs and information costs. Specifically, we examine how distance, coordination mechanisms, and atmosphere inf...

To date, the rich subsidiary literature has largely overlooked the individual entrepreneurial behaviours required by subsidiary managers to build crucial linkages and access vital knowledge. This chapter addresses this issue and takes a microfoundational approach to develop a typology of subsidiary managers’ attentional engagement on key boundary s...

As multinational enterprises increasingly disaggregate their value chains and assign functional responsibilities to foreign subsidiaries, they are increasingly focused on augmenting spatially distant activities and resources. At the same time, despite subsidiary managers operating at the “middle” of the organization and having awareness of operatio...

We investigate institutional antecedents to subsidiary external embeddedness and relate regulation constraining competition in local service sectors to subsidiary embeddedness with local partners in complementary sectors. Combining research on business networks with arguments derived from transaction cost economics, we argue that subsidiary externa...

This article examines the utilization of knowledge transferred between sending and receiving subsidiaries within multinational enterprises. A model was developed and tested on 169 specific knowledge transfer projects. The model explains the utilization of knowledge subject to transfer in terms of hierarchical governance tool efficacy and lateral re...

Can multinational subsidiary managers develop creative strategies at the subsidiary level? To answer this question, we suggest that tensions between the headquarters and subsidiary perspectives demand a greater focus on the micro-foundations of strategy development in multinational subsidiaries. At a time when subsidiaries are coming under increasi...

Understanding how the subsidiary develops a knowledge-creating role while operating in a dual context of an internal corporate environment, and external local network is the focus of this chapter. The authors discuss the need for the subsidiary to develop a combinative capability of managing relations in both contexts. To explore this combinative c...

In this paper we explore how the MNE subsidiary’s role internally within its corporation evolves through knowledge creation in accordance with an evolving external local knowledge network, and the extent to which the interwoven coevolving context matters for, and may be guided by the subsidiary. We conducted a qualitative investigation of purposely...

The present study focuses on effects of subsidiary internal knowledge-based activities—knowledge transfer and reverse knowledge transfer—and absorptive capacity on local responsiveness. We also examine whether absorptive capacity, shared values, and psychological safety, representing constituents of the motivation-opportunity-ability model of behav...

We use a microfoundations lens to challenge the assumption of a simple relationship between organizational-level context (subsidiary entrepreneurial orientation) and entrepreneurial outcomes (initiative realization). Drawing on middle manager and subsidiary literature we argue that the strategic activities of the subsidiary's central actor, the sub...

Purpose: We argue that a foreign-based R&D subsidiary of an MNE can potentially source knowledge from three diverse knowledge networks, namely (i) external knowledge network of the home country, (ii) external knowledge network of the host country, and (iii) internal (MNE) knowledge network. Drawing on the relative costs and benefits associated with...

The complex nature of international business research, with its cross-country and multilevel nature, complicates the empirical identification of relationships among theoretical constructs. The objective of this editorial is to provide guidance to help international business scholars navigate this complexity and ensure that readers can trust their f...

The international marketing literature suggests that the characteristics of the subsidiary-headquarters relationship play an important role in subsidiary knowledge development within the field of multinational corporations (MNCs). However, few studies examine the association between the subsidiary-headquarters relationship and subsidiary strategic...

We examine the success of knowledge transfer within an MNE network by unpacking aggregate knowledge flows into individual projects. We assess knowledge transfer performance along two dimensions: utilization of transferred knowledge and transfer cost. We argue that the substitutive versus complementary nature of subunits' activities is a key determi...

The contest for intra-organisational power in the multinational corporation (MNC) has gradually become a prominent issue on the research agenda. As long as 25 years ago, Hedlund (1980) investigated the strategic roles of subsidiaries in MNCs, and Doz and Prahalad (1981) raised the issue of how difficult it is for headquarters to remain in control o...

A special feature of multinational firms (MNCs) is the notion that their sub-units (subsidiaries) are embedded in different local networks (Ghoshal and Bartlett, 1990; Ghoshal and Nohria, 1997; Fors-gren, Johanson, and Sharma, 2000). Each subsidiary maintains unique and idiosyncratic patterns of network linkages and consequently is differentially e...

This article examines the utilization of knowledge transferred between sending and receiving subsidiaries within multinational enterprises. A model was developed and tested on 169 specific knowledge transfer projects. The model explains the utilization of knowledge subject to transfer in terms of hierarchical governance tool efficacy and lateral re...

Many manuscripts submitted to the Journal of International Business Studies propose an interaction effect in their models in an effort to explain the complexity and contingency of relationships across borders. In this article, we provide guidance on how best to explain the interaction effects theoretically within and across levels of analysis. Firs...

Knowledge-based and network-based activities are known determinants of foreign subsidiary influence. We demonstrate that the interaction between these factors is essential in understanding how subsidiaries gain influence within an MNC. We test this using data on 184 foreign-owned subsidiaries in the UK. The results indicate that the possession of s...

Many manuscripts submitted to Journal of International Business Studies propose an interaction effect in their models in an effort to explain the complexity and contingency of relationships across borders. In this article, we provide guidance on how to explain the interaction effects theoretically within and across levels of analysis. First, in the...

This study investigates local vertical linkage patterns of foreign subsidiaries. Specifically, we look at the dual role of such linkages as conduits for learning as well as potential channels for spillovers to competitors. On the basis of data from 97 subsidiaries and their most important local partners (customers and suppliers), we analyze the qua...

Although the Journal of International Business Studies is not a practice-oriented journal, thinking deeper about the practical relevance of our articles can only help enrich them and help decision makers implement better decisions. However, while many academic articles in social sciences go to great lengths to explain their theoretical and empirica...

This paper examines the competence development of subsidiaries in multinational enterprises. We analyze how local subsidiary environments affect the development of technological and business competencies among other units in the multinational enterprise. We test our predictions using data from 2,107 foreign-owned subsidiaries located in seven Europ...

This paper analyzes the MNC subsidiaries’ trade-off between the need for knowledge creation and the need for knowledge protection, and relates it to the extent of knowledge outflows generated within the host location. Combining research in International Business with Social Theory, we build a conceptual framework suggesting that subsidiaries that e...

The conceptualization of the multinational corporation (MNC) as a differentiated network suggests that the subsidiaries’ level of embeddedness in their local environment is crucial, as it is the basis for subsidiary-specific advantages and entrepreneur ship (Andersson et al., 2002; Frost, 2001). In addition to possessing important resources, the su...

Many studies have focused on the effects of MNC subsidiaries’ external relational embeddedness. Little attention has been given to its antecedents and especially to the potential effect that the business network context might have. We try to fill this gap and attempt to explain variation among subsidiaries’ degree of relational embeddedness. Our re...

Previous research has established that interpersonal similarity can influence knowledge sharing in such a way that similar people are more likely to share knowledge than those who are dissimilar. We contribute to the literature by showing that in the MNC context, cultural and functional similarity can become more powerful sources of bias than more...

This study investigates local vertical linkage patterns of foreign subsidiaries. Specifically, we look at the dual role of such linkages as conduits for learning as well as potential channels for spillovers to competitors. On the basis of data from 97 subsidiaries and their most important local partners (customers and suppliers), we analyze the qua...

This paper addresses the issue of how a subsidiary's internal and external embeddedness interact in generating the importance of the subsidiary vis-à-vis the MNC as a whole. We take previous findings of the positive impact of external embeddedness on a subsidiary's importance as our starting point and consider two questions: (a) how does the intern...

Building on network view and knowledge based view; this research investigates how relationships (with local actors, parent firm, and local actors), knowledge development, and reverse knowledge transfer impact on the extent to which a subsidiary can exert influence on strategic decisions of its MNC. The proposed model was tested with data on 184 sub...

Summary Later years' globalization and increased competition has forced firms to re-evaluate their current configuration and location of activities. An emerging shortage of talent and a recognition of knowledge sources far more spread around the globe have induced firms to re-think their configuration of knowledge-intensive activities, such as R&D....

Purpose – The purpose of this chapter is to develop a more fine-grained model of the relationship between multinational corporation (MNC) external embeddedness and subsidiary contribution to firm-level competitive advantage. Methodology/approach – We briefly review previous international management literature and show that the conception of MNC emb...

The phenomenon of subsidiary initiative has received increasing attention in recent years, but the consequences of initiatives and the associated dynamics of headquarters–subsidiary relationships have received much less research attention. Building on resource dependence theory and self-determination theory we argue that two basic goals subsidiary...

Managing the Contemporary Multinational explores the role of headquarters in different structures of multinational firms and shows how this role is affected by the complexity of contemporary research.

In the wake of the expansion of resource- and knowledge-based perspectives, knowledge has moved to the forefront as the strategically most important resource for organizations (Grant, 1996). From these perspectives, sustained competitive advantage is achieved by a superior organizational capability to coordinate heterogeneous knowledge resources in...

In this paper, we argue that a fruitful approach to the analysis of inter-organisational power in multinational corporations (MNCs) is to model the organisation as a federation. In the federative MNC, the headquarters and the subsidiaries are involved in a perpetual bargaining process. Thus a crucial issue is what power bases are there that the dif...

For decades, scholars have put forward the idea that change in industrial networks depends on the relationships and networks themselves. However, models are still lacking that conceptualize the heterogeneity of relationships and networks and that show how this heterogeneity actually affects change. This paper puts forward a model suggesting that ne...

Knowledge transfer in the multinational corporation (MNC) is typically studied at an aggregate level. This has led to important gaps in our understanding of knowledge transfer performance, because aggregate knowledge flows consist of distinct knowledge transfer projects. To address this, we study individual transfer projects and 'unpack' performanc...

Scholars and policy-makers have long been interested in different methods of increasing the level of foreign direct investment (FDI). Many governments thus offer different incentives, explicit or implicit, to MNEs to invest and establish operations in their markets (Globerman and Shapiro, 1999). The primary goal of such policy-making is to increase...

Network structures and relational characteristics have become increasingly prevalent for studying knowledge creation and diffusion. Some scholars claim that a large number of weak ties to counterparts facilitate a unit's possibilities to gather novel information while others stress strong ties between the unit and its partners in order to absorb th...

Given the importance of local (external) network embeddedness for an MNC subsidiary's ability to create new knowledge, a crucial question is what factors affect this local embeddedness. Despite its obvious relevance, few efforts have been made in the MNC literature to deal with this issue. In this paper, we hypothesize that a subsidiary's local emb...

Network structures and relational characteristics have become increasingly prevalent in the study of how firms find and exploit market and technological opportunities. Some scholars claim that a large number of relationships with a low degree of relational embeddedness facilitate a firm's possibilities to gather new knowledge; others stress a high...

In 1997, a world-leading tooling supplier lost a large customer. Virtually overnight, and without consultation, the customer announced that it would be moving all of its tooling supplies to an integrator. This would distance the supplier from the customer, and indirectly decrease volumes and margins. This dramatic event prompted the supplier to com...

In this article, the relation is explored between the external technical embeddedness of the subsidiary, its assigned role, and capability development in the MNC. It is argued that assigning roles of responsibility or mandates to certain subsidiaries can effect integration of subsidiary-developed knowledge in the MNC. Departing from literature on t...

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 s...

Recent research on the competitive advantage of multinational corporations (MNC) has emphasized the importance of the ability of subsidiaries to assimilate new knowledge from their external environment. Such an ability is important for the individual subsidiary's own performance as well as for the possibility it affords the MNC to combine and use r...

Subsidiaries have access to different types of resources and therefore perform differently in their market-place and within a multinational corporation (MNC). Yet, even though subsidiaries are the object of intense interest, remarkably little has been written about the assessment of subsidiary performance. In short, the strategic opportunities of s...

There has been a growing interest in looking upon the MNC as a differentiated network in the sense that subsidiaries have access to different types of resources and therefore perform differently in its market-place and within the MNC. Yet, even though subsidiaries are the object of intense interests, remarkably little have been written about ass...