Quotation Klopf, Patricia, Nell, Phillip C. 2018. How "space" and "place" influence subsidiary host country political embeddedness. International Business Review. 27 (1), 186-197.


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Abstract

As a part of multinational corporations (MNCs), subsidiaries operate in distinct host countries and have to deal with their external context. Host country political embeddedness, in particular, helps subsidiaries to obtain knowledge and understanding of the regulatory and political context, and to get access to local networks. Moreover, they get some guidance and support from their headquarters. Distance between MNC home and host countries, however, alienates subsidiaries from the MNC and influences the extent of subsidiary host country political embeddedness. We suggest that the host country political and regulatory context moderates the effect of distance on subsidiary host country political embeddedness by reducing the need and/or value of headquarters support. Using a sample of 124 European manufacturing subsidiaries, we find that distance (space) and context (place) matter jointly: the impact of distance is stronger for subsidiaries that operate in host countries with low governance quality and low political stability in place.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal International Business Review
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new STRAT-B, WH-B
Language English
Title How "space" and "place" influence subsidiary host country political embeddedness
Volume 27
Number 1
Year 2018
Page from 186
Page to 197
Reviewed? Y
URL http://www.sciencedirect.com/science/article/pii/S0969593116301305
DOI http://dx.doi.org/10.1016/j.ibusrev.2017.06.004
Open Access Y

Associations

People
Klopf, Patricia (Details)
Nell, Phillip C. (Details)
Organization
Global Business and Trade DP (Details)
Institute for International Business IN (Details)
International Business (Details)
Research areas (Ă–STAT Classification 'Statistik Austria')
5300 Economics (Details)
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