Subsidiary Strategy: The Embeddedness Component

• DOI: 10.2139/ssrn.1026264
• Publication Date: 2011-12-28T12:25:41Z
• Authors: C. Garcia Pont; Juan Ignacio Canales; Fabrizio Noboa
• Keywords: Embeddedness; Component (thermodynamics)

This paper inductively derives a model that develops the concept of subsidiary embeddedness as canvas within which strategy can take place. Our identifies three hierarchical levels embeddedness: Operational relates to interlocking day-to-day relations. Capability deals with development competitive capabilities for multinational whole. Strategic participation in MNC setting. We deem these types ways develop strategic alternatives. In such, different imply roles. Embeddedness, it was derived from revelatory case study, is not merely an outcome institutional setting, but resource manage by means manipulating dependencies or exerting influence over allocation critical resources. A modify its change restraints. Therefore, becomes integral part strategy.