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The Determinants of Subsidiary Mandates and Subsidiary Initiative: A Three-Country Study

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Internationalization

Part of the book series: The Academy of International Business Series ((AIB))

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Abstract

This chapter examines the international responsibilities, or mandates,1 of foreign-owned subsidiaries in Canada, Scotland and Sweden. The primary focus of the chapter is on the factors associated with mandate formation, but the impact of mandates on subsidiary performance is also examined. The chapter is built on two key premises: (1) that mandates are critical to the long-term growth of foreign-owned subsidiaries; and (2) that they are primarily earned by the subsidiary through the initiative of subsidiary managers. The former assumption has been central to much of the strategic management and public policy literature on subsidiary management (e.g. Etemad and Dulude, 1986; Rugman and Bennett, 1982; Science Council of Canada, 1980), and its implications have been explored. The latter assumption, by contrast, has been frequently mentioned (e.g. Crookell, 1986; Crookell and Morrison, 1990; McGuinness and Conway, 1986) but never studied in depth.

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Authors
  1. Julian Birkinshaw
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  2. Neil Hood
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Editor information

Editors and Affiliations

  1. Aston Business School, Aston University, UK

    Graham Hooley (Professor of Marketing and Head of the Marketing and Law Group) (Professor of Marketing and Head of the Marketing and Law Group)

  2. Aston Business School, Aston University, Birmingham, UK

    Ray Loveridge (Professor of Strategic Management and Director of Research, Visiting Fellow, Visiting Professor) (Professor of Strategic Management and Director of Research, Visiting Fellow, Visiting Professor)

  3. Science Policy Unit, University of Sussex, UK

    Ray Loveridge (Professor of Strategic Management and Director of Research, Visiting Fellow, Visiting Professor) (Professor of Strategic Management and Director of Research, Visiting Fellow, Visiting Professor)

  4. Ecole Superieure des Sciences Economiques et Commercials, Paris, France

    Ray Loveridge (Professor of Strategic Management and Director of Research, Visiting Fellow, Visiting Professor) (Professor of Strategic Management and Director of Research, Visiting Fellow, Visiting Professor)

  5. Warwick Business School, UK

    David Wilson (Professor of Strategic Management) (Professor of Strategic Management)

Copyright information

© 1998 Academy of International Business, UK Chapter

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Birkinshaw, J., Hood, N. (1998). The Determinants of Subsidiary Mandates and Subsidiary Initiative: A Three-Country Study. In: Hooley, G., Loveridge, R., Wilson, D. (eds) Internationalization. The Academy of International Business Series. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-26556-5_2

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