The goal of this essay is to study the crucial factors that affect managing of the subsidiaries and their role in the success of the TNCs, in their international cooperation. Most of the research on the specified issues was made at the level of the headquarters firm. A comprehensive approach has been adopted in the work, focusing on the parent-subsidiary perspectives, in order to understand more precisely whether these two sides reciprocally affect each other, in the entire process of creating, establishing and managing international cooperation.
Nowadays inter-company collaborations for innovations have proven to be an influential method to provide the competitiveness around the world. This is particularly apparent in the case of large Transnational Companies (TNCs), who have invested capitals in setting up and enforcing many different kinds of strategic partnerships.
A new phenomenon in this strategic process of decision-making employs the subsidiaries, mainly in developing cooperation on the international scale. The strategy allows the economic globalization, sought by many TNCs, resulted from having access and sharing the most reliable proficiencies with the targeted markets. This cooperation can arise, both intra-company, by contributing capital to enhance the available competences within the total TNC network, as well as inter-company, by involving horizontal counterparts (competitors and distributors) and vertical ones (participants of the industry’s supply chain).
The present paper was impacted by the literature affirming that, in the case of the TNCs generating, gaining and diffusing knowledge may derive from the external as well as from the internal environment. The vital role of the subsidiaries in the whole process of international cooperation can influence the effective collaboration itself.
Table of Contents
- Introduction
- Theoretical Background
- Data Analysis
- Google's Leadership Style
- 10 Most Valuable Google Acquisitions
- The Analysis of Top 5 Valuable Acquisitions
- Conclusions and Predictions
- Resources
Objectives and Key Themes
This essay aims to examine the key factors influencing the management of subsidiaries and their role in the success of transnational corporations (TNCs) in international cooperation. It adopts a comprehensive approach, focusing on both parent and subsidiary perspectives to understand their reciprocal influence in establishing and managing international cooperation. The research analyzes the impact of both internal and external factors on subsidiary development.
- The role of subsidiaries in the success of TNCs in international cooperation.
- The influence of both internal and external factors on subsidiary development.
- The reciprocal relationship between parent companies and subsidiaries in decision-making.
- The evolution of the parent-subsidiary relationship over time.
- Case study analysis of Google's acquisitions and their impact on the company's strategy.
Chapter Summaries
Introduction: This introductory chapter sets the stage by highlighting the growing importance of inter-company collaborations, particularly for TNCs seeking global competitiveness. It emphasizes the strategic role of subsidiaries in facilitating international cooperation, both within the TNC network and with external partners. The chapter establishes the essay's objective: to investigate the crucial factors influencing subsidiary management and their contribution to TNC success in international collaborations, focusing on a parent-subsidiary perspective to explore reciprocal influences in creating and managing this cooperation. It also provides a brief overview of the essay's structure.
Theoretical Background: This chapter delves into the theoretical underpinnings of TNCs, examining various perspectives such as hierarchies, internal markets, and inter-organizational networks. It focuses on the network perspective, which views TNCs as loosely coupled entities, allowing subsidiaries greater freedom in developing their resource profiles. However, it also acknowledges the hierarchical nature where the parent company retains significant control. The chapter discusses the evolution of the subsidiary's role, from a state of dependence to increased bargaining power and influence as it develops specialized competencies. It critiques existing literature for primarily focusing on internal network perspectives and neglecting external factors influencing subsidiary development. The chapter concludes by highlighting the limitations of solely relying on loosely coupled models for contemporary TNCs and emphasizes the growing importance of globally distributed R&D activities.
Keywords
Transnational Corporations (TNCs), Subsidiaries, Parent-Subsidiary Relationship, International Cooperation, Strategic Management, Network Perspective, Knowledge Diffusion, Innovation, Google, Acquisitions, Competitive Advantage.
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This document provides a comprehensive preview of a language text, including its table of contents, objectives and key themes, chapter summaries, and keywords. It serves as an overview to facilitate understanding of the text's content and scope.
What topics are covered in the text?
The text examines the key factors influencing the management of subsidiaries and their role in the success of transnational corporations (TNCs) in international cooperation. It focuses on the reciprocal relationship between parent companies and subsidiaries, considering both internal and external factors impacting subsidiary development. A case study of Google's acquisitions is also included.
What are the main objectives of the research?
The primary objective is to investigate the crucial factors influencing subsidiary management and their contribution to TNC success in international collaborations. The research aims to understand the reciprocal influence between parent and subsidiary perspectives in establishing and managing international cooperation, and analyze the impact of internal and external factors on subsidiary development.
What theoretical frameworks are used?
The text draws on theories of TNCs, examining various perspectives such as hierarchies, internal markets, and inter-organizational networks. It primarily utilizes the network perspective, viewing TNCs as loosely coupled entities, while acknowledging the hierarchical nature of parent-subsidiary relationships. The limitations of solely relying on loosely coupled models for contemporary TNCs are also discussed.
What is the structure of the text?
The text is structured into several chapters: an introduction, a chapter on theoretical background, a chapter on data analysis focusing on Google's acquisitions, a chapter on conclusions and predictions, and a resources section. The data analysis section specifically includes subsections on Google's leadership style, its 10 most valuable acquisitions, and an in-depth analysis of the top 5.
What case study is used?
The text uses Google's acquisitions as a case study to illustrate the impact of subsidiary management on a TNC's overall strategy and competitive advantage.
What are the key themes explored?
Key themes include the role of subsidiaries in TNC success, the influence of internal and external factors on subsidiary development, the reciprocal relationship between parent companies and subsidiaries, the evolution of the parent-subsidiary relationship, and the impact of Google's acquisitions on its strategy.
What are the key words associated with this text?
Key words include: Transnational Corporations (TNCs), Subsidiaries, Parent-Subsidiary Relationship, International Cooperation, Strategic Management, Network Perspective, Knowledge Diffusion, Innovation, Google, Acquisitions, Competitive Advantage.
- Quote paper
- Elina Lesyk (Author), 2017, The parent-subsidiary relationship in management of the modern Transnational Companies (TNCs). The case-study of the Google company, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/451845
