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The Dynamics of Role Development of Subsidiary of German Companies from Central Europe - Research Results

100%

Eckert S. , Rossmeissl F. , Golkowski T. E.

2007

nr 1(127)

7-27

In this paper, the authors analyze the influence of a subsidiary's external environment, of its task and of its mode of ownership and its mode of market entry on the development of its role for the case of German subsidiaries in Central Europe. A subsidiary's role is defined as a three-dimensional construct, consisting of a subsidiary's tasks, its value chain activities and their respective geographical scope. Surveying 99 subsidiaries of German multinational Corporations (MNCs) located in the Czech Republic, Hungary, and Poland, the authors find that mode of entry and the subsidiary's task significantly influence the development of its role.