Foreign subsidiary performance in multinational enterprises: the role of business development capabilities and resource deployment

The research on subsidiary capability building highlights the importance of creating new capabilities in host countries while the resource management view emphasises effective resource structuring, bundling, and deployment actions to achieve competitive advantages and value creation. Building upon t...

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Detalles Bibliográficos
Autores: Nguyen, Quyen T.K., Almodóvar Martínez, Paloma
Tipo de recurso: artículo
Fecha de publicación:2025
País:España
Institución:Universidad Complutense de Madrid (UCM)
Repositorio:Docta Complutense
Idioma:inglés
OAI Identifier:oai:docta.ucm.es:20.500.14352/119431
Acceso en línea:https://hdl.handle.net/20.500.14352/119431
Access Level:acceso abierto
Palabra clave:Subsidiary-level business development capabilities
Subsidiary-level resource deployment
Subsidiary performance
Subsidiary capability-building
Subsidiary-specific advantages
Resource management view
Administración de empresas
Empresas
5311 Organización y Dirección de Empresas
Descripción
Sumario:The research on subsidiary capability building highlights the importance of creating new capabilities in host countries while the resource management view emphasises effective resource structuring, bundling, and deployment actions to achieve competitive advantages and value creation. Building upon these theoretical advances, we develop a conceptual framework that examines the direct and combined impacts of subsidiary-level business development capabilities encompassing both product and market development, and resource deployment on the performance of foreign subsidiaries of multinational enterprises. We empirically test this framework using survey data from manufacturing and service subsidiaries, archival data from parent firms, and host country data from public sources. The empirical results support our hypotheses. We discuss the implications of our findings for both theory and practice.