Parenting Advantage in the MNC: An Embeddedness Perspective on the Value Added by Headquarters

Nell, Phillip C. and Ambos, Björn (2013) Parenting Advantage in the MNC: An Embeddedness Perspective on the Value Added by Headquarters. Strategic Management Journal, 34 (9). pp. 1086-1103. ISSN 1097-0266


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What determines the value an MNC's headquarters adds to its own affiliates? In this paper, we shed light on this question by linking the embeddedness view of the multinational corporation to the literature on parenting advantage. We test our hypotheses on an original dataset of 124 manufacturing subsidiaries located in Europe. Our results indicate that the external embeddedness of the MNC is an antecedent to headquarters' value creation. We find that headquarters' investments into their own relationships with the subsidiaries' contexts are positively related to the value added by headquarters. Furthermore, this relationship is stronger when the subsidiary itself is strongly embedded. We discuss implications for the MNC literature, embeddedness research, and the literature on parenting and headquarters' roles. (authors' abstract)

Item Type: Article
Additional Information: This is the peer reviewed version of the following article which has been published in final form at . This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.
Keywords: local linkages / embeddedness / parent value added parenting / headquarters-subsidiary relationships
Divisions: Departments > Welthandel > International Business > Nell
Version of the Document: Accepted for Publication
Variance from Published Version: Minor
Depositing User: Kerstin Kvapil
Date Deposited: 24 Mar 2016 12:47
Last Modified: 24 Mar 2016 15:32
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