Strategy shifts in MNC subsidiaries

Abstract

This paper critically reviews the model of subsidiary strategy proposed by Jarillo and Martinez and, based on the data from a survey of 171 MNC manufacturing affiliates in the UK, proposes an extension of their model. The key finding is the indentification of a group of affiliates (quiescent subsidiaries) in the low integration–low responsiveness quadrant, not previously identified in a study of this nature. Characteristics of the quiescent affiliate type are explored, and the determinants of strategy stability and strategy change over time are evaluated. It is concluded that differences between the extended model and the original may lie in basic strategic differences between Spanish and UK affiliates. © 1998 John Wiley & Sons, Ltd.

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