Analyzing Intersubsidiary Relationships

Abstract

As a basis not only for this study but also for future research in the field it is useful to start out with a systematic approach to analyzing intersubsidiary relationships (see Fong et al. 2007: 54 and similarly Luo 2005: 80-81 for this appeal). The goal is to provide a general overview of the characteristics and dynamics of the phenomenon and to reflect upon their implications for the underlying research project. Given that few contributions on intersubsidiary relationships exist, such ‘groundwork’ is necessary before attempting an explanation of the phenomenon. This chapter is structured as follows: First, a delineation of intersubsidiary relationships is undertaken by setting out the relevant level of analysis and providing some basic definitions (section 2.1). Second, competition and cooperation are presented as the two main types of relationship, with coopetition representing a combination of both (section 2.2). Third, headquarters and subsidiaries are identified as the origins of intersubsidiary relationships (section 2.3). Fourth, the relevant contents or objects of competition and cooperation are outlined (section 2.4). Finally, the types, origin and contents of intersubsidiary relationships are integrated in a holistic classification scheme (section 2.5).