As a part of multinational corporations (MNCs), subsidiaries operate in distinct host countries
and have to deal with their external context. Host country political embeddedness, in particular,
helps subsidiaries to obtain knowledge and understanding of the regulatory and political
context, and to get access to local networks. Moreover, they get some guidance and support
from their headquarters. Distance between MNC home and host countries, however, alienates
subsidiaries from the MNC and influences the extent of subsidiary host country political embeddedness.
We suggest that the host country political and regulatory context moderates the effect of distance on subsidiary host country political embeddedness by reducing the need
and/or value of headquarters support. Using a sample of 124 European manufacturing subsidiaries, we find that distance (space) and context (place) matter jointly: the impact of distance is stronger for subsidiaries that operate in host countries with low governance quality and low
political stability in place.
| Identifer | oai:union.ndltd.org:VIENNA/oai:epub.wu-wien.ac.at:5889 |
| Date | January 2018 |
| Creators | Klopf, Patricia, Nell, Phillip C. |
| Publisher | Elsevier |
| Source Sets | Wirtschaftsuniversität Wien |
| Language | English |
| Detected Language | English |
| Type | Article, PeerReviewed |
| Format | application/pdf |
| Rights | Creative Commons: Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) |
| Relation | https://doi.org/10.1016/j.ibusrev.2017.06.004, https://www.elsevier.com/, https://www.elsevier.com/about/open-science/open-access, http://epub.wu.ac.at/5889/ |
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