Foreign subsidiary performance in multinational enterprises: The role of business development capabilities and resource deployment

The research on subsidiary capability building highlights the importance of creating new capabilities in host countries while the resource management view emphasises effective resource structuring, bundling, and deployment actions to achieve competitive advantages and value creation. Building upon these theoretical advances, we develop a conceptual framework that examines the direct and combined impacts of subsidiary-level business development capabilities encompassing both product and market development, and resource deployment on the performance of foreign subsidiaries of multinational enterprises. We empirically test this framework using survey data from manufacturing and service subsidiaries, archival data from parent firms, and host country data from public sources. The empirical results support our hypotheses. We discuss the implications of our findings for both theory and practice.

Authors

Publication Details

Journal
Journal of International Management
Published
2025-04-04
DOI
https://doi.org/10.1016/j.intman.2025.101251
Citations
1
Primary Topic
International Business and FDI
Type
article
Field-Weighted Citation Impact
2.23
Controls
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article

Foreign subsidiary performance in multinational enterprises: The role of business development capabilities and resource deployment

Paloma Almodóvar, Quyen T.K. Nguyen
1 citations
Journal of International Management
International Business and FDI
2.23
article

Foreign subsidiary performance in multinational enterprises: The role of business development capabilities and resource deployment

Paloma Almodóvar, Quyen T.K. Nguyen
article en
1 citations

Abstract

The research on subsidiary capability building highlights the importance of creating new capabilities in host countries while the resource management view emphasises effective resource structuring, bundling, and deployment actions to achieve competitive advantages and value creation. Building upon these theoretical advances, we develop a conceptual framework that examines the direct and combined impacts of subsidiary-level business development capabilities encompassing both product and market development, and resource deployment on the performance of foreign subsidiaries of multinational enterprises. We empirically test this framework using survey data from manufacturing and service subsidiaries, archival data from parent firms, and host country data from public sources. The empirical results support our hypotheses. We discuss the implications of our findings for both theory and practice.

Journal of International ManagementVol. 31(3)
Openalex Percentile: Top 13%
International Business and FDI
2.23
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