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.

Economia / Master in Economics / The relevance of foreign direct investment (FDI) (UNCTAD, 2007) is recognised by a vast body of literature. However, until recently most studies and policy-making initiatives were focused on the mere magnitude of FDI inflows (i.e. the quantity), neglecting the quality of these investments. Recent literature on subsidiaries roles and evolution is shedding light on the asymmetric quality of multinationals (MNEs) operations, hence helping to understand their differentiated impact on host economies. This dissertation contributes to this literature by investigating empirically the quality of foreign subsidiaries activities located in Ireland and Portugal. Using data from a purposely designed questionnaire survey, the following questions will be analysed. First, which characteristics of multinational subsidiaries are conducive to innovation? This study will consider the impact of age, education and R&D intensities, among other characteristics, on innovation. This question will be analysed using a probit model. Second, do foreign subsidiaries based in Ireland and Portugal differ in a systematic way with regard to these characteristics and with regard to the motivations that led to their establishment? This question will be studied using nonparametric methods. The empirical results (first application) corroborate the hypotheses that age, education and R&D intensities of the subsidiary impact positively on innovation. The results are consistent with previous studies that emphasise the time dependent aspect of multinational subsidiaries evolution (Young, Hood and Peters, 1994; Birkinshaw and Hood, 1997, 1998) and those that highlight the importance of human capital (Bartel and Lichtenberg, 1987; Narula and Marin, 2003) and R&D activities (Cohen and Levinthal, 1989, 1990) for technology absorption and creation. It was also found (the second empirical application) that the asset-seeking motivation played a more important role in attracting investors to Ireland than to Portugal and that subsidiaries based in Ireland tend to display greater education and R&D intensities than those based in Portugal.