This study focuses on how subsidiary managers of multinational corporations (MNCs) respond to unique organisational challenges, so-called "non-routine problems". Such a non-routine problem requires firms to enter into a problem solving process that questions established processes, practices or capabilities to find novel answers. While such problem solving is very challenging, it also represents an opportunity for innovation and for making a strategically important contribution to the wider corporation. The latter could be of strategic importance to the subsidiary, especially in times of increasing pressures on subsidiary management to demonstrate their value to the corporation.