Technology Sourcing and Performance of Foreign Subsidiaries in Greece: The Impact of Mne and Local Environmental Contexts

Zusammenfassung

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The purpose of this study is to investigate the influence of two categories of sources of technology on subsidiary performance. These technology sources can be associated either with the internal Multinational Enterprise (MNE) system; or, the local environment in which the subsidiary is based. A questionnaire-based survey was carried out on 88 subsidiaries located in Greece and results were derived through the use of ordered probit analysis. Internal MNE technology sourcing has a positive impact on subsidiary performance, which is stronger than that of local (Greek) technology sourcing. Contrary to the researchers' expectations, technology sourcing linked to the local context primarily has a negative influence on subsidiary performance.

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Auszug

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Technology Sourcing and Performance of Foreign Subsidiaries in Greece: The Impact of Mne and Local Environmental Contexts

Introduction

Technology is a core imperative for modern organizations. Nowadays firms seeking sustained competitiveness need to generate and exploit technological capabilities on a worldwide scale. Early conceptualization of the multinational enterprise (MNE) linked its expansion into foreign markets to the exploitation of MNE proprietary advantages (technology and associated knowledge) generated in the home base of the headquarters (Frost 2001). Two factors seem to have accounted for the initial rejection of the foreign subsidiaries' creative technological activities. First, the only motivation that could encourage such activities would be the need to adapt the MNE centrally-derived capacities to local conditions that were considered of secondary importance (Pearce 1999). Second, factors related to the nature of technology provided an overwhelming "gravitational" force pulling such activities towards a focused centralized facility (Manolopoulos et al. 2007). These factors had to do with the need for precise coordination, control and security of technology inasmuch as interdependent operations were geographically dispersed.

Generally the viewpoint that the sources of technological ideas and projects for MNE subsidiaries originate at home reflects the "head office assignment" perspective. This approach posits that the foreign subsidiary is an instrument of the MNE and that management at the headquarters is responsible for defining the imperatives of subsidiaries abroad (Vernon 1966). The significance of MNE subsidiaries can be decisive if they provide key resources in the form of technology, knowledge, resources etc. to other MNE actors (Andersson et al. 2001, Gupta/Govindarajan 2000); but still the role of h...

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