Does Distance to Subsidiaries affect Headquarters Value Added?

Phillip C. Nell, Sjoerd Beugelsdijk, Björn Ambos

    Publikation: Bidrag til bog/antologi/rapportKonferenceabstrakt i proceedingsForskningpeer review

    Abstrakt

    How does distance between MNC headquarters and their subsidiaries affect the value added generated by headquarters? Integrating theories on spatial transaction costs with the headquarter view of the MNC, we link two types of distances, geographic distance and contextual distance, with headquarters value added. We test our hypotheses on an original dataset of 124 manufacturing subsidiaries in Europe. We find that the relation between distance and headquarters value added is conditional on the degree of subsidiaries’ external embeddedness. We find no direct effect of distance. The value added of headquarters is highest for subsidiaries that are not externally embedded in the host country and that operate at a large distance. It is lowest for locally responsive subsidiaries with high external embeddedness operating at a large distance. We discuss implications for the literature on headquarters-subsidiaries relations and distance research.
    OriginalsprogEngelsk
    TitelProceedings of the 56th Annual Meeting of the Academy of International Business : Local Contexts in Global Business
    RedaktørerKlaus Meyer, Tunga Kiyak
    UdgivelsesstedEast Lansing, MI
    ForlagAcademy of International Business
    Publikationsdato2014
    Sider1557
    StatusUdgivet - 2014
    BegivenhedAIB 2014 Annual Meeting : Local Context in Global Business - Westin Bayshore, Vancouver, Canada
    Varighed: 23 jun. 201426 jun. 2014
    Konferencens nummer: 56
    http://aib.msu.edu/events/2014/

    Konference

    KonferenceAIB 2014 Annual Meeting
    Nummer56
    LokationWestin Bayshore
    LandCanada
    ByVancouver
    Periode23/06/201426/06/2014
    Internetadresse
    NavnAcademy of International Business. Annual Meeting. Proceedings
    Vol/bind56
    ISSN2078-4430

    Citationsformater