The development of subsidiary roles in the motor vehicle manufacturing industry

This paper presents a revised subsidiary role framework that incorporates elements of the subsidiary development research. The study is grounded in the resource-based view and the network model of the MNC, and extends the subsidiary development framework by specifying new contributory roles. While drawn from extant subsidiary role typologies, these roles are extended to reflect different levels of resource development. The new framework delineates the influence of subsidiary resource development and subsidiary initiative on contributory roles. The study employs a single industry case study design, focusing on the Australian Motor Vehicle Manufacturing Industry (AMVMI). The findings establish that subsidiaries in the AMVMI have the ability to develop specialised resources and that when subsidiary initiative is combined with subsidiary-driven resource development, subsidiaries are able to exert considerable influence on the contributory role they fulfil.

► Subsidiary role framework devised that is based on subsidiary development research. ► Framework extends the resource-based view and network model of the MNC. ► Through displays of initiative, subsidiaries may achieve higher contributory roles. ► Subsidiaries may change their role as they continuously develop their resources. ► Subsidiaries may perform multiple roles simultaneously.