Identity work in longstanding subsidiaries during crisis: reinforcing, preserving and reconstructing subsidiary identity

During a national crisis, longstanding subsidiaries' roles are placed under considerable pressure. At the same time, the connotation of longstanding subsidiaries implies that they have existed for a significant period of time, during which they would have developed legacies and identities related to these roles. However, there is limited understanding on how longstanding subsidiaries work with their legacies and identities to influence their roles in the MNE or in the local environment. This study examines how longstanding subsidiaries of Swedish MNEs in Brazil engage in identity work during an economic crisis. Drawing on a comparative case study of 16 competence-exploring and competence-exploiting subsidiaries, the findings reveal three distinct foci of identity work: reinforcing, preserving, and reconstructing. The study contributes to the emerging literature on subsidiary identity work by demonstrating how identity work relates to subsidiary roles over time. It also contributes to subsidiary evolution research by revealing how longstanding subsidiaries manage legacy in response to environmental turbulence. • This paper reports on a study of 16 longstanding subsidiaries of Swedish MNEs in Brazil during a national economic crisis. • A national economic crisis prompts three foci of subsidiary identity work among subsidiaries in relation to their legacy. • Reinforcing subsidiary identity work is characterised by backward-looking orientation and embracing subsidiary legacy. • Preserving subsidiary identity work is characterised by present-orientation and accepting subsidiary legacy. • Reconstructing subsidiary identity work is characterised by forward-looking orientation and rejecting subsidiary legacy.