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Subsidiary¡¦s Entrepreneurship: The Perspectives of Human Capital Theory and Knowledge-based View

Contemporary studies in international management field conceptualize subsidiaries as semi-autonomous entities. By involving in entrepreneurial undertakings and strategic activities, subsidiaries could contribute strategic value to parent multinational corporation (MNC). Distinguishing from previous researches derived from entrepreneurship theory and done by Birkinshaw and his colleagues, this study incorporated human capital theory and knowledge-based view (KBV) to fulfill the existing research gap and enlarged our understanding of subsidiary entrepreneurship.
This research proposed two models to unlock and testify the underexplored phenomenon of subsidiary entrepreneurship. In the first model, this research incorporated human capital management in MNCs context and testified that not merely top management team (TMT) entrepreneurial leadership and subsidiary entrepreneurial culture were critical antecedents of subsidiary¡¦s strategic initiative, but the human resource management (HRM) practices of subsidiary talent management played an important mediator to generate the entrepreneurial system. In the second model, this study demonstrated the cross-field integration and synthesis of entrepreneurial literatures, human capital theory and knowledge-based view and expressed a more comprehensive illustration of strategic entrepreneurship. This study certified that absorptive capacity could facilitate subsidiary¡¦s entrepreneurial culture and further enhance subsidiary¡¦s strategic initiative. Moreover, subsidiary¡¦s practices of talent management could facilitate its absorptive capacity and further contribute to subsidiary¡¦s strategic outputs.
By analyzing the empirical data collected from 202 MNCs¡¦ foreign subsidiaries in Asian area, this study testified that the subsidiaries which could contribute strategic value creation for parent MNCs should equip multilayer of initiative-takings: the local distinctive capability, market initiative and knowledge outflow. Furthermore, the HRM practices of talent management in subsidiary played critical mediating role on both the development of organizational capability, improvement of absorptive capacity and the enhancement of subsidiary strategic initiative. TMT entrepreneurial leadership was the core engine which could activate subsidiary¡¦s mechanisms to facilitate the activities of strategic value creations.

Identiferoai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0828111-163918
Date28 August 2011
CreatorsChen, Wan-ching
ContributorsHeh Jason Huang, Christina Yu-Ping Wang, Ming-Chu Yu, Shang-Ping Lin, Bih-Shiaw Jaw, I-Heng Chen, Wu-Der Tsai
PublisherNSYSU
Source SetsNSYSU Electronic Thesis and Dissertation Archive
LanguageEnglish
Detected LanguageEnglish
Typetext
Formatapplication/pdf
Sourcehttp://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0828111-163918
Rightsuser_define, Copyright information available at source archive

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