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ENTREPRENEURSHIP IN MULTINATIONAL CORPORATIONS: THE CHARACTERISTICS OF SUBSIDIARY INITIATIVES

✍ Scribed by JULIAN BIRKINSHAW

Publisher: John Wiley and Sons
Year: 1997
Tongue: English
Weight: 189 KB
Volume: 18
Category: Article
ISSN: 0143-2095
DOI: 10.1002/(sici)1097-0266(199703)18:3<207::aid-smj864>3.0.co;2-q

No coin nor oath required. For personal study only.

✦ Synopsis

This paper defines initiative as a key manifestation of corporate entrepreneurship, and examines the types of initiative exhibited in a sample of six subsidiaries of multinational corporations. From a detailed analysis of 39 separate initiatives, four distinct types are identified, which we refer to as 'global,' 'local,' 'internal' and 'global-internal hybrid,' to correspond to the locus of the market opportunity whence each arose. Two important conclusions are indicated. First, entrepreneurship at the subsidiary level has the potential to enhance local responsiveness, worldwide learning and global integration, a much broader role than previously envisioned. Second, the use of contextual mechanisms to create differentiated subsidiary roles has its limitations because each initiative type is facilitated in different ways.

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