Parenting Advantage in the MNC: An Embeddedness Perspective on the Value Added by Headquarters

Phillip C. Nell, Björn Ambos

    Research output: Contribution to journalJournal articleResearchpeer-review

    Abstract

    What determines the value an MNC's headquarters adds to its own affiliates? In this paper, we shed light on this question by linking the embeddedness view of the multinational corporation to the literature on parenting advantage. We test our hypotheses on an original dataset of 124 manufacturing subsidiaries located in Europe. Our results indicate that the external embeddedness of the MNC is an antecedent to headquarters' value creation. We find that headquarters' investments into their own relationships with the subsidiaries' contexts are positively related to the value added by headquarters. Furthermore, this relationship is stronger when the subsidiary itself is strongly embedded. We discuss implications for the MNC literature, embeddedness research, and the literature on parenting and headquarters' roles
    Original languageEnglish
    JournalStrategic Management Journal
    Volume34
    Issue number9
    Pages (from-to)1086-1103
    ISSN0143-2095
    DOIs
    Publication statusPublished - Sep 2013

    Cite this

    @article{436bf519f7274176bd1507ea85580680,
    title = "Parenting Advantage in the MNC: An Embeddedness Perspective on the Value Added by Headquarters",
    abstract = "What determines the value an MNC's headquarters adds to its own affiliates? In this paper, we shed light on this question by linking the embeddedness view of the multinational corporation to the literature on parenting advantage. We test our hypotheses on an original dataset of 124 manufacturing subsidiaries located in Europe. Our results indicate that the external embeddedness of the MNC is an antecedent to headquarters' value creation. We find that headquarters' investments into their own relationships with the subsidiaries' contexts are positively related to the value added by headquarters. Furthermore, this relationship is stronger when the subsidiary itself is strongly embedded. We discuss implications for the MNC literature, embeddedness research, and the literature on parenting and headquarters' roles",
    keywords = "Embeddedness, Headquarters-subsidiary relationships, Local linkages, Parent value added, Parenting",
    author = "Nell, {Phillip C.} and Bj{\"o}rn Ambos",
    year = "2013",
    month = "9",
    doi = "10.1002/smj.2058",
    language = "English",
    volume = "34",
    pages = "1086--1103",
    journal = "Strategic Management Journal",
    issn = "0143-2095",
    publisher = "JohnWiley & Sons Ltd.",
    number = "9",

    }

    Parenting Advantage in the MNC : An Embeddedness Perspective on the Value Added by Headquarters. / Nell, Phillip C.; Ambos, Björn.

    In: Strategic Management Journal, Vol. 34, No. 9, 09.2013, p. 1086-1103.

    Research output: Contribution to journalJournal articleResearchpeer-review

    TY - JOUR

    T1 - Parenting Advantage in the MNC

    T2 - An Embeddedness Perspective on the Value Added by Headquarters

    AU - Nell, Phillip C.

    AU - Ambos, Björn

    PY - 2013/9

    Y1 - 2013/9

    N2 - What determines the value an MNC's headquarters adds to its own affiliates? In this paper, we shed light on this question by linking the embeddedness view of the multinational corporation to the literature on parenting advantage. We test our hypotheses on an original dataset of 124 manufacturing subsidiaries located in Europe. Our results indicate that the external embeddedness of the MNC is an antecedent to headquarters' value creation. We find that headquarters' investments into their own relationships with the subsidiaries' contexts are positively related to the value added by headquarters. Furthermore, this relationship is stronger when the subsidiary itself is strongly embedded. We discuss implications for the MNC literature, embeddedness research, and the literature on parenting and headquarters' roles

    AB - What determines the value an MNC's headquarters adds to its own affiliates? In this paper, we shed light on this question by linking the embeddedness view of the multinational corporation to the literature on parenting advantage. We test our hypotheses on an original dataset of 124 manufacturing subsidiaries located in Europe. Our results indicate that the external embeddedness of the MNC is an antecedent to headquarters' value creation. We find that headquarters' investments into their own relationships with the subsidiaries' contexts are positively related to the value added by headquarters. Furthermore, this relationship is stronger when the subsidiary itself is strongly embedded. We discuss implications for the MNC literature, embeddedness research, and the literature on parenting and headquarters' roles

    KW - Embeddedness

    KW - Headquarters-subsidiary relationships

    KW - Local linkages

    KW - Parent value added

    KW - Parenting

    U2 - 10.1002/smj.2058

    DO - 10.1002/smj.2058

    M3 - Journal article

    VL - 34

    SP - 1086

    EP - 1103

    JO - Strategic Management Journal

    JF - Strategic Management Journal

    SN - 0143-2095

    IS - 9

    ER -