Value-Chain Networks and Entrepreneurial Output in Multinational Subsidiaries

Pavlos Dimitratos, Ulf Andersson, Ioanna Liouka

    Research output: Chapter in Book/Report/Conference proceedingConference abstract in proceedingsResearchpeer-review


    Value-chain networks are of major importance to multinational subsidiaries, yet they have failed to receive significant attention in the literature. We extend the knowledge-based view of the firm by exploring whether three different types of multinational subsidiary networks have dissimilar impact on their entrepreneurial output. Entrepreneurial output can generate superior performance and positive externalities to the subsidiary. Based on
    a large-scale study of 268 multinational subsidiaries in the UK, we find that value-chain networks have a higher positive impact than multinational corporation (MNC) networks and non value-chain networks; because they
    may provide the subsidiary knowledge with market opportunities that it lacks and that the other types of networks cannot effectively provide. However, value-chain networks have a negative effect on entrepreneurial output of a subsidiary operating in an environment of high uncertainty; because they can constrain the exploration and creation of new knowledge that cannot be provided by any of the networks. Contrary to our expectations, the combined effect of value-chain and non-value chain networks has a negative influence on
    entrepreneurial output; and, the combined effect of value-chain and MNC networks does not affect entrepreneurial output. Research and managerial implications are discussed.
    Original languageEnglish
    Title of host publicationProceedings of the 53rd Annual Meeting of the Academy of International Business
    EditorsShige Makingo , Tunga Kiyak
    Place of PublicationEast Lansing, MI
    PublisherAcademy of International Business
    Publication date2011
    Publication statusPublished - 2011
    EventAIB 2011 Annual Meeting: International Business for Sustainable World Development - Nagoya, Japan
    Duration: 24 Jun 201128 Jun 2011
    Conference number: 53


    ConferenceAIB 2011 Annual Meeting
    Internet address
    SeriesAcademy of International Business. Annual Meeting. Proceedings

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