Abstract
This paper investigates how decision-making autonomy affects the possibility and intensity of innovation in subsidiaries of multinational enterprises (MNEs). Subsidiaries are increasingly identified as sources of innovation and as vehicles for cross-border transfer of new competences. The question of how much decision-making autonomy subsidiaries should have is a core issue in the management of headquarters-subsidiary relationships. Using two complementary theoretical perspectives, we hypothesize a non-linear relationship between subsidiary’s decision-making autonomy and innovation. We test our hypothesis in a multi-country and multiindustry database based on survey evidence of 134 subsidiaries located in five Central and Eastern European countries from 23 home countries. The empirical results provide support for a non-linear U shaped relationship between subsidiary decision-making autonomy and innovation intensity.
| Original language | English |
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| Title of host publication | Proceedings of the 55th Annual Meeting of the Academy of International Business |
| Editors | Patricia McDougall-Covin, Tunga Kiyak |
| Place of Publication | East Lansing, MI |
| Publisher | Academy of International Business |
| Publication date | 2013 |
| Pages | 63 |
| Publication status | Published - 2013 |
| Event | AIB 2013 Annual Meeting : Bridging the Divide: Linking IB to Complementary Disciplines and Practice - Sabancı University, Koç University, and Özyeğin University, Istanbul, Turkey Duration: 3 Jul 2013 → 6 Jul 2013 Conference number: 55 http://aib.msu.edu/events/2013/ |
Conference
| Conference | AIB 2013 Annual Meeting |
|---|---|
| Number | 55 |
| Location | Sabancı University, Koç University, and Özyeğin University |
| Country | Turkey |
| City | Istanbul |
| Period | 03/07/2013 → 06/07/2013 |
| Internet address |
| Series | Academy of International Business. Annual Meeting. Proceedings |
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| Volume | 55 |
| ISSN | 2078-4430 |