Hybridization of MNE Subsidiaries: The Automotive Sector in by Florian A. A. Becker-Ritterspach (auth.)

By Florian A. A. Becker-Ritterspach (auth.)

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86). The Charter is typically a shared understanding between the subsidiary and the HQ regarding the subsidiary’s responsibilities. (Birkinshaw, 2000, p. 86) The relationship between the charters and resources/capabilities is a problematic one. Equilibrium between the two aspects is the exception, rather than the rule. More often than not, there will be mismatches between capabilities/resources and charters. Birkinshaw and Hood (1998) see the development of capabilities/resources and charters, in other words, the development of subsidiary roles, as driven by three contextual factors.

European Institutionalism European Institutionalism tends to be equated with the Varieties of Capitalism literature (Whitley, 1999; Hall and Soskice, 2001). g. Sorge, 2004). In contrast to American Institutionalism, European Institutionalism is more diverse. Tempel and Walgenbach (2003) state, for example, that European Institutionalists differ widely in focus and terminology. g. g. Whitley, 1992), the ‘industrial order’ approach (Lane, 1994) and the ‘social systems of production’ approach (Hollingsworth and Boyer, 1997).

Such an assumption disregards that MNEs, related to their divers strategic and institutional embeddedness, and related their different brands, strategic choices and international division of labour, may not have a transfer intent in the first place (see also Pries, 2003). International Business perspectives The International Business (IB) perspective has like no other perspective furthered our understanding of MNEs, why they come into being, and how they are organizationally configured. g. Hymer, 1976; Dunning, 2000), the study of organizational design and their relations to strategic contexts tented to be developed in corporate strategy and business policy literature (Ghoshal and Westney, 1993).

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