Beugelsdijk, Sjoerd, Nell, Phillip C., Ambos, Björn. 2017. When Do Distance Effects Become Empirically Observable? An Investigation in the Context of Headquarters Value Creation for Subsidiaries. Journal of International Management ,


BibTeX

@ARTICLE{Beugelsdijk2017,
title = {When Do Distance Effects Become Empirically Observable? An Investigation in the Context of Headquarters Value Creation for Subsidiaries},
author = {Sjoerd Beugelsdijk and Phillip C. Nell and Björn Ambos},
year = {2017},
doi = {http://dx.doi.org/10.1016/j.intman.2017.03.002},
language = {EN},
journal = {Journal of International Management},
abstract = {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.},
}

Abstract

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.

Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Journal of International Management
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new STRAT-B, WH-B
Language English
Title When Do Distance Effects Become Empirically Observable? An Investigation in the Context of Headquarters Value Creation for Subsidiaries
Year 2017
Reviewed? Y
DOI http://dx.doi.org/10.1016/j.intman.2017.03.002

Associations

People
Nell, Phillip C. (Details)
External
Ambos, Björn (University of St. Gallen, Switzerland)
Beugelsdijk, Sjoerd (University of Groningen, Netherlands)
Organization
Competence Center for Emerging Markets and CEE WE (Details)
International Business (Nell) (Details)
Research areas (ÖSTAT Classification 'Statistik Austria')
2965 Knowledge management (Details)
5234 Administrative science (Details)
5307 Business and management economics (Details)
5324 Organizational research (Details)
5333 Business management (Details)
5915 Economic geography (Details)
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