Entrepreneurial Deficits in the Global Firm
Progress In International Business Research, 6, 117-137
33 Pages Posted: 25 Feb 2014 Last revised: 5 Jun 2014
Date Written: 2011
In this chapter we address the lack of sufficient entrepreneurship in multinational enterprises that seek to improve their ability to achieve national responsiveness. The main reason for this deficiency appears to be the transfer of proven routines from the home country, even when it is clear from the outset that these routines will simply not work, and will require much more than a quasi-mechanistic 'adaptation' to the new environment. What many MNEs urgently need is to close their entrepreneurial deficits in host countries, by allowing novel resource recombinations. These resource recombinations should lead to accessing fully the coveted host country location advantages that triggered entry in these countries, and to success in the market place.
Keywords: subsidiary entrepreneurship, entrepreneurial deficit, bounded reliability
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