Fighting for Power: The Strategy of Global Mncs' Subsidiaries

IESE Working Paper No. D/489

22 Pages Posted: 26 Nov 2003

See all articles by C. Garcia Pont

C. Garcia Pont

IESE Business School, University of Navarra

Fabrizio Noboa

University of Navarra, IESE Business School

Date Written: January 2003

Abstract

The purpose of this paper is to examine the relational configurations of a subsidiary that belongs to a global industry such as auto components manufacture. As global integration pressures are high in this environment, there are pressures for centralization and some subsidiaries are losing resources and capabilities to the benefit of headquarters or other subsidiaries. Consequently, they may fight within the MNC to retain control over certain resources and capabilities, mainly by building strong relationships with local suppliers, providers, customers or other units of the MNC that may reach global relevance. While previous studies have identified the significance of networks as a metaphor for understanding MNC structure, in this paper we attempt to show how analysis of a subsidiary's networks of contacts can be a useful tool to identify the role the subsidiary is playing in the multinational as a whole. It shows how networks can be used by the subsidiary as a tool to proactively develop a formulated strategy.

Keywords: subsidiary, relationship network, resource configuration, multinational corporations, auto components

Suggested Citation

Garcia Pont, Carlos and Noboa, Fabrizio, Fighting for Power: The Strategy of Global Mncs' Subsidiaries (January 2003). IESE Working Paper No. D/489, Available at SSRN: https://ssrn.com/abstract=458886 or http://dx.doi.org/10.2139/ssrn.458886

Carlos Garcia Pont (Contact Author)

IESE Business School, University of Navarra ( email )

Camino del Cerro del Aguila, 3
Pamplona, Navarra 31080
Spain
(34-3) 204.40.00 (Phone)
(34-3) 280.11.77 (Fax)

Fabrizio Noboa

University of Navarra, IESE Business School ( email )

Camino del Cerro del Aguila, 3
28023 Madrid
Spain
(34) 93-253-4200 (Phone)
(34) 92-253-4343 (Fax)

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