Title: ENTREPRENEURSHIP IN THE MULTINATIONAL CORPORATION: THE EFFECTS OF CORPORATE AND LOCAL CONTEXTS.
Abstract: Mounting evidence suggests that the entrepreneurial activities of subsidiaries play a key role in determining the success of their parent multinational corporations (MNCs). However, little research has examined the factors that determine subsidiary entrepreneurship. This study presents a model of entrepreneurship, focusing on the corporate and local environmental contexts of subsidiaries. We hypothesize that the corporate context comprising global subsidiary mandates and control systems is an important determinant of subsidiary entrepreneurship. We also propose that the local environmental context comprising dynamism, hostility, and complexity influence a subsidiary's future entrepreneurship. We test the hypotheses using data collected at two points in time from 227 US-based foreign manufacturing subsidiaries of MNCs headquartered in Australia, France, Germany, Japan, Korea, Netherlands, and the UK. The analyses suggest that both corporate and local environmental contexts are positively associated with subsidiary entrepreneurship.
Publication Year: 2001
Publication Date: 2001-08-01
Language: en
Type: article
Indexed In: ['crossref']
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Cited By Count: 10
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