The Role of Internal Embeddedness for Subsidiary Influence in the Multinational Enterprise

• Theoverall aim is to address the role of internal embeddedness in subsidiary’sinfluence on strategic decisions in the multinational enterprise andspecifically discuss how the internal production network and the subsidiary management’sinterpersonal relationships facilitate and impede its potential influence.  The two dimensions of internal embeddednessare scrutinized individually and then put together in a conceptualframework.  The internal productionnetwork is made up of where and what the subsidiary do, i.e. their activitiesand how these activities are related to the sister subsidiaries’ activities (astructural dimension), and the interpersonal network is based upon thesubsidiary management’s “voice” and standing in the larger MNC. The papers tentativeconclusion – presented as a conceptual model – is that the internal productionnetwork is the baseline for the degree of strategic influence a subsidiary haswhilst the subsidiary management’s interpersonal network can extend thisinfluence.

Subject headings

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business (hsv//eng)

Publication and Content Type

ref (subject category)

kon (subject category)