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

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.