Resource Orchestration and Subsidiary Performance: How Does Entrepreneurial Human Capital Matter?

Andreas Philipp Distel, Pedro de Faria, Miguel Torres Preto, António Sérgio Ribeiro

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Abstract

The importance of resource combination and reconfiguration for subsidiary success within multinational corporations (MNCs) is central to international business literature. However, an understanding of how MNC subsidiaries can build capabilities to perform these resource transformations effectively remains largely underdeveloped. To address this shortcoming, we integrate insights about entrepreneurial managers from dynamic capability theory into models from MNC subsidiary management and propose that subsidiaries can develop dynamic capabilities by hiring managers with entrepreneurial experience. We reason that human capital acquired through prior entrepreneurial experience enables subsidiary managers to increase subsidiary performance. We test and support this hypothesis using longitudinal employer-employee data for 6,738 MNC subsidiaries in Portugal. We also find that the positive effect is stronger if subsidiaries are connected to headquarters through expatriate managers and operate in dynamic host country environments
Original languageEnglish
Title of host publicationProceedings of the Seventy-eighth Annual Meeting of the Academy of Management
EditorsGuclu Atinc
Number of pages1
Place of PublicationBriar Cliff Manor, NY
PublisherAcademy of Management
Publication date2018
Article number18577
DOIs
Publication statusPublished - 2018
EventThe Academy of Management Annual Meeting 2018: Improving Lives - Chicago, United States
Duration: 10 Aug 201814 Aug 2018
Conference number: 78
http://aom.org/annualmeeting/

Conference

ConferenceThe Academy of Management Annual Meeting 2018
Number78
CountryUnited States
CityChicago
Period10/08/201814/08/2018
Internet address
SeriesAcademy of Management Proceedings
ISSN2151-6561

Cite this

Distel, A. P., de Faria, P., Preto, M. T., & Ribeiro, A. S. (2018). Resource Orchestration and Subsidiary Performance: How Does Entrepreneurial Human Capital Matter? In G. Atinc (Ed.), Proceedings of the Seventy-eighth Annual Meeting of the Academy of Management [18577] Briar Cliff Manor, NY: Academy of Management. Academy of Management Proceedings https://doi.org/10.5465/AMBPP.2018.18577abstract