Reverse dependency: a longitudinal case study investigation into headquarter-subsidiary relationship in the context of an emerging country

Vijay Pereira, Surender Munjal, Nandakumar M. K.

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    Abstract

    This paper concerns the Headquarter -Subsidiary relationships in terms of their dependency on each other. It provides a conceptual framework and typology to measure headquarter and subsidiary dependency on capabilities and resources. It highlights a novel phenomenon called ‘reverse dependency’ and offers avenues for future research. Using an in-depth longitudinal case study approach evidence suggests that headquarters dependency on its subsidiary was rising. This is an emerging phenomenon, especially in the scenario of increased globalisation and convergence of the world economy. The paper has some important managerial implications by aiding managers in understanding the implications of subsidiary entrepreneurship and location embeddedness. This can be useful in bargaining and negotiating decision making within the multinational corporation. It can also create healthy competition between various subsidiaries.
    Original languageEnglish
    Pages (from-to)50-62
    JournalInternational Studies of Management & Organization
    Volume46
    Issue number1
    Early online date4 Nov 2015
    DOIs
    Publication statusPublished - 2016

    Keywords

    • Reverse dependency
    • Longitudinal case study,
    • Headquarters-Subsidiary
    • Emerging market,
    • India

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