tailieunhanh - MNC subsidiary embeddedness in the host country: An integrated conceptual framework

This study departs from the traditional embeddedness concept, which expresses the relationships between MNCs and the national context of host countries, and develops an integrative framework based on four different approaches: the transaction cost and internationalization approach; the resource-based view and micro-political approach; the network paradigm; and the approach of economic geographers. | VNU Journal of Science: Economics and Business, Vol. 32, No. 2 (2016) 77-86 MNC Subsidiary Embeddedness in the Host Country An Integrated Conceptual Framework Nguyen Thi Thanh Mai1,*, John F. Cassidy2 1 VNU University of Economics and Business, 144 Xuan Thuy Str., Cau Giay Dist., Hanoi, Vietnam 2 Michael Smurfit Graduate Business School - University College Dublin (Ireland) Abstract It is widely acknowledged in international business (IB) studies that a host country can play a critical role in the strategic development of MNC subsidiaries. This study departs from the traditional embeddedness concept, which expresses the relationships between MNCs and the national context of host countries, and develops an integrative framework based on four different approaches: the transaction cost and internationalization approach; the resource-based view and micro-political approach; the network paradigm; and the approach of economic geographers. This integrative framework may be used in future research to provide a deeper analysis of the relationship between the multinationals and the local host milieu. Received 16 February 2016, revised 9 June 2016, accepted 28 June 2016 Keywords: MNC subsidiary, embeddedness, host country. 1. Introduction * subsidiary is a displaced activity [3] which specialises in an activity or a limited range of activities in the firm value chain [4], it does not necessarily embed into a specific market. This paper develops the ideas around the above issues and focuses on understanding the different dimensions of embeddedness of a MNC subsidiary in a host country. In order to answer the question “How can the embeddedness of a MNC subsidiary in a host country be characterised?”, this paper provides a review on the terminology of embeddedness of a MNC subsidiary in different academic approaches to frame a comprehensive conceptual framework. The management of multinational subsidiaries has emerged as a mainstream of IB studies over the last fifty years,