Abstract
| Original language | English |
|---|---|
| Journal | Journal of International Management |
| Volume | 23 |
| Issue number | 3 |
| Pages (from-to) | 255-267 |
| Number of pages | 13 |
| ISSN | 1075-4253 |
| DOIs | |
| Publication status | Published - Sep 2017 |
Bibliographical note
Published online: 3. April 2017Keywords
- Multinational corporations
- Distance
- Headquarters-subsidiary relationships
- Headquarters value added
- Subsidiary embeddedness
- Behavioral approach
Cite this
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When Do Distance Effects Become Empirically Observable? An Investigation in the Context of Headquarters Value Creation for Subsidiaries. / Beugelsdijk, Sjoerd; Nell, Phillip C.; Ambos, Björn.
In: Journal of International Management, Vol. 23, No. 3, 09.2017, p. 255-267.Research output: Contribution to journal › Journal article › Research › peer-review
TY - JOUR
T1 - When Do Distance Effects Become Empirically Observable?
T2 - An Investigation in the Context of Headquarters Value Creation for Subsidiaries
AU - Beugelsdijk, Sjoerd
AU - Nell, Phillip C.
AU - Ambos, Björn
N1 - Published online: 3. April 2017
PY - 2017/9
Y1 - 2017/9
N2 - Integrating distance research with the behavioral strategy literature on MNC headquarters-subsidiary relations, this paper explores how the distance between headquarters and subsidiaries relates to value added by the headquarters. We show for 124 manufacturing subsidiaries in Europe that, on average, distance is unrelated to value added by headquarters but that this effect is contingent upon the extent to which the subsidiary is locally embedded. Only after a certain threshold level of subsidiary embeddedness, distance is negatively related to headquarters value added. This effect is more pronounced for cultural, economic, and administrative distances than for pure geographic distance, highlighting the critical role of contextual variation for MNCs.
AB - Integrating distance research with the behavioral strategy literature on MNC headquarters-subsidiary relations, this paper explores how the distance between headquarters and subsidiaries relates to value added by the headquarters. We show for 124 manufacturing subsidiaries in Europe that, on average, distance is unrelated to value added by headquarters but that this effect is contingent upon the extent to which the subsidiary is locally embedded. Only after a certain threshold level of subsidiary embeddedness, distance is negatively related to headquarters value added. This effect is more pronounced for cultural, economic, and administrative distances than for pure geographic distance, highlighting the critical role of contextual variation for MNCs.
KW - Multinational corporations
KW - Distance
KW - Headquarters-subsidiary relationships
KW - Headquarters value added
KW - Subsidiary embeddedness
KW - Behavioral approach
KW - Multinational corporations
KW - Distance
KW - Headquarters-subsidiary relationships
KW - Headquarters value added
KW - Subsidiary embeddedness
KW - Behavioral approach
UR - https://sfx-45cbs.hosted.exlibrisgroup.com/45cbs?url_ver=Z39.88-2004&url_ctx_fmt=info:ofi/fmt:kev:mtx:ctx&ctx_enc=info:ofi/enc:UTF-8&ctx_ver=Z39.88-2004&rfr_id=info:sid/sfxit.com:azlist&sfx.ignore_date_threshold=1&rft.object_id=954926246561
U2 - 10.1016/j.intman.2017.03.002
DO - 10.1016/j.intman.2017.03.002
M3 - Journal article
AN - SCOPUS:85016618938
VL - 23
SP - 255
EP - 267
JO - Journal of International Management
JF - Journal of International Management
SN - 1075-4253
IS - 3
ER -