Inertia and change in multinational enterprise subsidiary capabilities: an evolutionary economic geography framework

Phelps, Nicholas A. and Fuller, Cris ORCID: https://orcid.org/0000-0002-8399-7963 2016. Inertia and change in multinational enterprise subsidiary capabilities: an evolutionary economic geography framework. Journal of Economic Geography 16 (1) , pp. 109-130. 10.1093/jeg/lbv002

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Abstract

In this article we argue for a process-centred use of the dynamic capabilities-based view of evolution in multinational enterprise (MNE) subsidiary capabilities. In particular, we consider changes in the scale, scope and specialisation of resources and capabilities at subsidiaries over time by drawing on Dodgshon’s (1998) study of change in empires and societal systems. Following Dodgshon, we classify changes at MNE subsidiaries into processes of (i) expansion or contraction, (ii) reduction, (iii) involution, (iv) aggregation upwards and outwards, (v) accretion and (vi) replacement/substitution, illustrating this framework with reference to the extant literature. We suggest that the potential of this framework lies, in part, in its embrace of both change and inertia within MNEs and at their subsidiaries. It is important to consider both change and inertia if we are to understand the implications of MNE subsidiary evolution national and subnational economic development policy.

Item Type:	Article
Date Type:	Publication
Status:	Published
Schools:	Geography and Planning (GEOPL)
Additional Information:	This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted reuse, distribution, and reproduction in any medium, provided the original work is properly cited.
Publisher:	Oxford University Press (OUP)
ISSN:	1468-2702
Date of First Compliant Deposit:	17 February 2020
Date of Acceptance:	12 January 2015
Last Modified:	05 May 2023 03:38
URI:	https://orca.cardiff.ac.uk/id/eprint/72072

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