This study has investigated the evolution of Michelin Siam Group (MSG), a Thai subsidiary of the Michelin Group (France), over the period between 1987 and 2007. Particular attention has been given to the process of changing subsidiary roles as well as factors influencing the process. The study has adopted a qualitative case-study approach based on the data collected from interviews of senior managers at MSG. The analysis has demonstrated that over the past 20 years, MSG has undergone several changes in its charters and capabilities, with the changes in its roles accordingly. In its early years (pre-1997), MSG was a ??local implementer?? in its MNC network, mainly serving the local market in a limited range of product lines mandated by the headquarters (HQs). Its charters, both manufacturing and commercial charters, have since been extended to cover broader product lines and international markets beyond Thailand through the accumulation of production capabilities enhanced by a range of training programmes. MSG has thus increasingly shifted from a ??local implementer?? to a ??regional/global implementer??. More importantly, it has also been revealed that the changes in MSG??s roles have been strongly influenced by the HQs. Through its control over decision making, the HQs has been heavily involved in introducing changes at MSG. However, the role of subsidiary, industry, and local environment factors should not be neglected. MSG??s increasing capabilities and superior performance coupled with the favourable and dynamic local environment as well as the competitive nature of an industry have been found to have instigated HQs?? favourable decisions for MSG. While the HQs has been the dominant driver of MSG??s roles and changes in its roles, the findings of this study largely appear to support the influences of the interplay of corporate, subsidiary, industry, and local environment factors in shaping subsidiary roles over time.

This study has investigated the evolution of Michelin Siam Group (MSG), a Thai subsidiary of the Michelin Group (France), over the period between 1987 and 2007. Particular attention has been given to the process of changing subsidiary roles as well as factors influencing the process. The study has adopted a qualitative case-study approach based on the data collected from interviews of senior managers at MSG. The analysis has demonstrated that over the past 20 years, MSG has undergone several changes in its charters and capabilities, with the changes in its roles accordingly. In its early years (pre-1997), MSG was a ??local implementer?? in its MNC network, mainly serving the local market in a limited range of product lines mandated by the headquarters (HQs). Its charters, both manufacturing and commercial charters, have since been extended to cover broader product lines and international markets beyond Thailand through the accumulation of production capabilities enhanced by a range of training programmes. MSG has thus increasingly shifted from a ??local implementer?? to a ??regional/global implementer??. More importantly, it has also been revealed that the changes in MSG??s roles have been strongly influenced by the HQs. Through its control over decision making, the HQs has been heavily involved in introducing changes at MSG. However, the role of subsidiary, industry, and local environment factors should not be neglected. MSG??s increasing capabilities and superior performance coupled with the favourable and dynamic local environment as well as the competitive nature of an industry have been found to have instigated HQs?? favourable decisions for MSG. While the HQs has been the dominant driver of MSG??s roles and changes in its roles, the findings of this study largely appear to support the influences of the interplay of corporate, subsidiary, industry, and local environment factors in shaping subsidiary roles over time.

In the past several decades research has emphasized innovation development and transfer as key issues when investigating the multinational enterprise (MNE). This thesis focuses on the question of what factors make headquarters involve itself in innovation transfer projects taking place between a sending and a receiving subsidiary within the MNE. This relates to headquarters active participation and role in the organization of resources (structure) and flows (processes) within the MNE. Using a database covering 169 innovation transfer projects the empirical analysis reveals that distances influence headquarters involvement, albeit in different directions. Systematic differences based on subsidiary and innovation characteristics and headquarters involvement is found. Not only subsidiary characteristics are of importance for headquarters involvement, but also the embeddedness of the subsidiary hosting the innovation transfer project. More specifically, physical and cultural distance between the sending and receiving subsidiaries influence headquarters involvement in the transfer negatively, whereas linguistic and economic distance between the subsidiaries conducting the transfer have a positive influence on headquarters involvement in innovation transfer. Looking more closely at the innovations subject to transfer the results suggests that innovations perceived as complex and important are favored for headquarters support. The same is true for innovations that are related to the core business of the subsidiary. At a subsidiary level, powerful subsidiaries initially receive more of headquarters support, but as subsidiary power increase, headquarters becomes less involved, i.e., a curvilinear effect of power is found. Acquired subsidiaries tend to become favored for headquarters involvement in transfer relative to greenfield subsidiaries. Finally, the results indicate that headquarters involves itself in transfer projects when the subsidiaries hosting the transfer projects have been relationally embedded during the innovation development phase. Theoretically, headquarters involvement can be conceptualized as orchestration of innovations within the MNE, and as a form of resource allocation. Thus, this thesis contributes to the understanding of what influences intra-MNE resource allocation, as well as what factors capture the attention of headquarters leading to innovation orchestration. Headquarters involvement in innovation transfer has implications for setting subsidiaries on evolutionary trajectories.

本個案分析以奇異塑膠台灣子公司為例，說明在面對各跨國公司區域整合紛紛將將區域總公司設在中國的趨勢，台灣產業外移，奇異塑膠台灣子公司如何避免被邊緣化的威脅？ 說明台灣在2000年初、電子組裝產業由OEM 轉型為ODM，及雖然生產線外移但是產業仍將研發連同規格制定仍舊保留在台灣。而奇異塑膠台灣的子公司經理人如何發揮他的創業家精神，利用這些規格制定留台灣優勢的因素、還有他的敏銳的觀察力發現電子產業的國際與大中華區域之間的價值鏈，善用他與總公司與姊妹公司的良好關係兜售他的創意、取得母公司的支持資源、而培養奇異塑膠台灣子公司在電子組裝產業獨特的能力，進而對在中國的姊妹子公司做出貢獻。而這ㄧ連串的主導活動奇異塑膠台灣子公司不但沒有被邊緣化，反而子公司因此轉型，子公司經理人運用他的創意制定“台商規格制定的生意的平台“使子公司的地位在電子產業處於更重要的策略角色，組織不但未被縮編、還因此增加人員、且獲得總公司的認可，更將重要的電子產業的全球角色成員編列在台灣及ㄧ系列的獨特資源。 筆者也將此個案與歷年的文獻做比對，讓個案更有學理的基礎，可以有信心的用本文作為跨國公司在台灣的子公司做為發展的參考及勉勵，並且個案所述的價值鏈及台商規格制定的生意的平台是可以套用在任何國籍或跨區域需要規格制定的產業上。希望這個成功的模式可以幫助別人。 / This case study uses GE Plastic as an example to illustrate how a Taiwanese branch prevailed when facing the global trend that international corporations, including Taiwanese firms, restructured their district headquarters to mainland China. Taiwan GE Plastic general manager leveraged Taiwan’s unique advantages on product specifications to gain strategic importance and supports from its global and regional headquarter. This manager realized several facts: first, although Taiwan moved its manufacturing components to mainland China. Taiwan kept its designing capabilities in-house; second. Greater China needs Taiwan’s capabilities to complete the value chain and generate profits; third, she maintained favorable relationships with the global headquarter and China regional headquarter. In lights of these facts, she sold an innovative concept to the global headquarter and attained resources to create a platform that kept Taiwan GE plastic relevant. This “speciation-dictating” platform enabled Taiwan GE Plastic to dominate its industry and contribute enormously to its sibling, the China branch. Not only wasn’t it marginalized, Taiwan GE Plastic placed itself in a key strategic position and gained recognition from its mother headquarter. This platform is not bounded by a particular industry and can be used in many other domains. Practitioners from other industries in Taiwan may gain insightful implications from this case and reposition their Taiwan branches in a vantage point.