Purpose The purpose of this paper is to describe, explore and explain the influence of entrepreneurial knowledge transfer effectiveness in the subsidiary initiative selling process. Specifically the flow of tacit knowledge relating to specific entrepreneurial opportunities transferred from subsidiaries as part of an attempt to achieve approval, support or resources for subsidiary initiatives is under focus. The paper seeks to develop hypothesis regarding possible relationships between tacit knowledge transfer effectiveness and subsidiary initiative, and further the relationship regarding the utilization of tacit knowledge transfer mechanisms for this purpose. Method The study consists of qualitative research in the form of a multiple case study. Eight cases are presented, four are Swedish subsidiaries of international organizations and the other four are Swedish headquarters of international MNC´s. The study uses an ‘abductive’ approach, moving frequently between literature, theory and empirical findings in order to prepare hypotheses that can be used for quantitative testing. The study develops its final hypotheses by comparing hypotheses that can be derived from literature, and then confirming, rejecting or modifying them based on the empirical evidence collected. Findings The study finds that tacit knowledge transfer effectiveness is a significant determinant of subsidiary initiative. Despite this fact the study finds that subsidiary managers appear to underrate and in some cases disregard the importance of tacit knowledge transfer effectiveness in the initiative selling process. The fact that tacit knowledge transfer effectiveness is not actively addressed means that a significant opportunity for improvement probably exists in this area. The study findings stand in contrast to the viewpoint held by the majority of the existing literature that although the transfer of tacit knowledge and the associated integrative and interactive communication mechanisms will have a positive direct effect on subsidiary initiative, they will as a secondary effect increase headquarters monitoring and interference. This interference is thought to decrease subsidiaries autonomy, entrepreneurial-ness and ultimately the level of subsidiary initiative. The study finds that the secondary effect is in fact in the opposite direction, being positively related to subsidiary initiative. The study also finds that when examining subsidiaries located in small developed markets the most important entrepreneurial knowledge flow to consider may be between the subsidiary and its regional management structure, as opposed to the head office. Originality/Value The study combines existing literature with a multiple case study to create hypothesise specifically relating to tacit knowledge transfer effectiveness and its role as a determinant of subsidiary initiative. The study further focuses on the influence of tacit knowledge transfer mechanisms in relation to subsidiary initiative. The study provides a classification of subsidiary initiatives which is most useful given the subject of this study and further creates a distinction between the discrete short term effects of a specific instance of knowledge transfer and the continuous process of knowledge transfer over time. The paper also brings forward the importance of the distinction between the conceptualization of the discrete specific process of initiative selling, and the cumulative effect of initiative selling over time, which along with other types of knowledge transfer and subsidiary promotion tactics I refer to as ‘subsidiary selling’. Implications for research The hypotheses developed in this paper are suitable to be tested in a large scale quantitative study. The fact that managers do not seem to be actively trying to transfer tacit knowledge more effectively means that where active tacit entrepreneurial knowledge transfer strategy is found it is likely to have significant effect on subsidiary initiative level. The challenge to the conventional assumptions that the presence and utilization level of tacit knowledge transfer mechanisms are likely to have a positive side effect on subsidiary initiative, as opposed to the negative side effect as predicted by contingency theory, is very significant. The distinction between the short- and medium term effects, as put forward in this study, informs scholars that an academic study needs to both take into account the time frame over which the effects of knowledge transfer are studied as well as the negative feedback loop of the knowledge transfer. The study also puts forward specific categories of subsidiary initiative, and suggests that these categories should be individually studied in future quantitative research. Implications for managers/practitioners Subsidiary Management should be aware that they could dramatically improve their entrepreneurial project approval rate by improving their tacit knowledge transfer effectiveness. The finding  regarding that increases in tacit knowledge effectiveness, lead to lower costs of future knowledge transfer, further leading to increased likelihood of headquarters attention and comfort, means that they have the opportunity to create a virtuous circle of increased knowledge transfer resulting in lower costs of knowledge transfer resulting in more willingness to engage in knowledge transfer. The finding that the secondary effects of knowledge transfer of entrepreneurial opportunities have a further positive effect on subsidiary initiative means that there is very little downside to increasing the use of integrating and interactive communication mechanisms, and with significant upside this indicates managers should immediately attempt to increase the presence and utilization of these mechanisms. The study indicates that it may be a prudent strategy for managers of subsidiaries in multinational corporations operating in small developed market’s to increase their tacit knowledge transfer effectiveness regarding entrepreneurial opportunities during the initiative selling process, as this rare skill may help them win the battle for internal resources such as attention and finance.

China has been heavily investing in new energy. With the Chinese government encouragement as well as huge demand from domestic, a lot of MNCs set up subsidiaries in China to enter Chinese market. The new energy industry in China is under rapid and prosperous development. This study adopts qualitative approach, through interviewing with three new energy companies as well as secondary data collection to understand in such changing environment, how MNC¡¦s subsidiary in China can manage the dynamics and build up capability to achieve initiative is the objective this study attempt to understand. The findings show that under different strategies, exploitation and exploration, of developing dynamic capability in China, there will be corresponding HR, R&D, and marketing practices in subsidiary. And these practices will lead to different result of subsidiary initiatives - local and global initiative.

The Determinants of MNC Subsidiary¡¦s Autonomy and Initiative An Empirical Study of MNC Subsidiary in Taiwan Abstract The research focus of MNC subsidiary has been transferred from HQ perspective to transnational network perspective. Under network perspective, MNC subsidiary¡¦s role and function have been widely recognized. Some subsidiaries do not play a receptive role dictated from HQ, but leap to an international player or product mandate. Through fifty years economic development, the MNC Taiwan subsidiary¡¦s role has been changed. Therefore, it is worthy to study the MNC Taiwan subsidiary¡¦s behavior. This thesis focuses on the determinants of subsidiary¡¦s autonomy and initiative. We define the subsidiary autonomy as the level to which the HQ delegate and the subsidiary initiative as the result of subsidiary¡¦s autonomous innovation. The subsidiary autonomy demonstrates the subsidiary¡¦s ability to operate independently. The subsidiary initiative exhibits the subsidiary can contribute to the whole MNC. This research utilizes the HQ¡Xsubsidiary dyadic relationship characteristics, the level to which subsidiary¡¦s dependence on MNC, the subsidiary¡¦s resource and subsidiary¡¦s network characteristics as the explanatory variables to examine the effects on subsidiary¡¦s autonomy and initiative. The rationales of the hypotheses include procedure justice theory, resource dependence perspective, resource based view and MNC network perspective. This research uses survey to collect data. The population is the list of foreign enterprises in Taiwan published by Dun and Bradstreet, 2000. The subsidiaries belong to manufacturing industry and non-financial service industry. The subsidiaries are owned by foreign MNC. Its scale is above 30 people and its operation time must exceed one year. We use cluster analysis to formulate the subsidiary role, and use multi-regression and ANCOVA analysis to examine the effects of independent variables on subsidiary¡¦s autonomy and initiative. After analyzing 67 MNC¡¦s Taiwan subsidiaries, the results reveal that HQ¡¦s procedure justice, subsidiary¡¦s integration with MNC, the subsidiary¡¦s local responsiveness and subsidiary¡¦s relative capability have influence on subsidiary autonomy. In addation, HQ¡¦s procedure justice, subsidiary¡¦s dependence of knowledge resource on MNC, subsidiary¡¦s ownership structure, subsidiary¡¦s entrepreneurship level, subsidiary¡¦s relative capability, subsidiary¡¦s local responsiveness and subsidiary autonomy can affect the subsidiary initiative. These results assert that the subsidiary¡¦s role is highly influenced by its position in MNC network. Therefore this finding coincides with MNC network perspective. However, while examining the subsidiary¡¦s behavior, we still can¡¦t neglect the effects of HQ-subsidiary dyadic relationship and subsidiary¡¦s intrinsic characteristic, its resource. Therefore, these dissertation results respond to Birkinshaw¡¦s perspective. The subsidiary behavior is simultaneously influenced by HQ, subsidiary and local environment. Moreover, these research findings also correspond to the three subsidiary research stream, including HQ-subsidiary relationship, subsidiary role and subsidiary evolution. Finally, by conducting this research in Taiwan, this results also reply the researchers¡¦ attention on the MNC subsidiaries in the developing countries.