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Whither National Subsidiaries? The need to refocus International Management research on structures and processes that matter
journal contributionposted on 07.10.2021, 12:30 by Tony Edwards, Luda Svystunova, Philip Almond, Philipp Kern, Kyoungmi Kim, Olga Tregaskis
The notion that multinational companies (MNCs) are comprised of multiple subsidiaries in different countries is one that underpins voluminous research in international management. This body of research was recently the subject of an authoritative and comprehensive review in this journal (Meyer, Li and Schotter, 2020). However, we share the concerns about the prevalence of the term ‘subsidiary’ within academic writing expressed by some others (Mees-Buss, Welch and Westney,2019) and take this further by questioning the assumptions of authority and control on which it is based. We argue that the role of national subsidiaries in how MNCs are organized has been eroded by developments ‘from above’ and ‘from below’ the national level such that it cannot be assumed that national subsidiaries are important influences on how MNCs govern and coordinate their production and service provision and how work is organized. We set out the implications for theory and methods in international management(IM).