Unravelling the Subsidiary Initiative Process: A Multilevel Approach

Abstract

Strategy‐making and entrepreneurial behaviour at the subsidiary level, in particular the phenomenon of subsidiary initiative, has received increasing research attention in recent years. In the fields of international business, strategy and entrepreneurship, several studies addressing aspects of this phenomenon have been conducted. They focused on different stages of the subsidiary initiative process, different theories and also different methodological levels. This puts subsidiary initiatives as a topic at the crossroads of several disciplines, so that theory‐building remains fragmented, and there is a lack of perspective capturing the complexity of the entire subsidiary initiative process. Based on a comprehensive literature review, this paper discusses theoretical concepts and streams of thinking that have contributed to our understanding of the subsidiary initiative process, and develops an organizing framework based on stages and levels of the subsidiary initiative process. In order to integrate theories across levels, the authors identify ‘aggregation’ theories that guide the emergence of initiatives from the individual up to the network level, and also acknowledge theories that link the micro–macro divide and may help in the development of a more holistic view of subsidiary initiatives.

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