Section outline

  • Unit Objectives
              1. Recognize emerging market MNCs as important players in the international competitive environment
              2. Understand the primary characteristics of emerging country MNCs and their models of international expansion
              3. Understand the different roles subsidiaries may play
              4. Differentiate main role typologies and recognize their applicability in various companies
    • The structure and organization of MNCs discussed so far, in particular in Unit 2, is related to companies from industralized countries. More recently we can observe a growing importance of MNCs from emerging economies. Based on their specific home country environment these firms have specific characteristics and are challenging the traditional MNC with distinct strategies.

    • The section above, on emerging country MNCs, makes apparent that companies operate heterogeneous country environments and therefore a uniform model on how to treat subsidiaries is expedient. In transnational organizations differentiated networks are made up of heterogeneous organisational units in foreign countries. Different subsidiaries can play dissimilar roles within the MNC network and numerous classifications of generic subsidiary strategies or roles are proposed. Here and in the following screencasts an overview of existing role typologies is given. In addition, the strengths and weaknesses of the various role typologies are discussed.

    • ♦ ♦  Did You Understand? ♦ ♦ 

    • ♦ ♦  Exercise Materials ♦ ♦ 

    • Further reading: Morschett et al. (2015) Chapter 3, p. 55-66 and Chapter 5, p. 103-115