`A major contribution of this exciting book is the perspective of the subsidiary manager operating network... In its extreme version this means that all managers are subsidiary managers… challenging those who still view multinationals as hierarchies. With exceptional clarity of thought and writing, Julian Birkinshaw stakes out the ground as a major new thinker of the fields of international business and strategic management ' - Alan Rugman, Templeton College, University of Oxford Much current literature on globalization and competition focuses on the external environment in which firms operate. Julian Birkinshaw's book looks within international firms at the dynamics that affect their growth and position. Are

Mapping the Process of Subsidiary Evolution

Mapping the process of subsidiary evolution

This chapter, and those that follow it, take an increasingly broad focus. Up to now the emphasis has been on subsidiary initiative and its specific effects on various subsidiary and firm-level phenomena. The relative emphasis is now reversed – the focus is on a better understanding of certain subsidiary and firm-level issues, and the role of subsidiary initiative as one of several processes that affects them.

The specific objective of this chapter is to model the process of subsidiary evolution1 that was hinted at in Chapter 4. Subsidiary evolution can be defined for the moment as the result of an accumulation or depletion of capabilities over time. While not forgetting that our focus on the ...

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