Abstract
What role do host country institutions play for the strategic influence of subsidiaries in multina-tional enterprises (MNEs)? Through an inductive study of ten headquarters-subsidiary dyads across three MNEs, this paper identifies enablers of subsidiary influence in proposed strategies from headquarters, i.e., headquarter strategic initiatives. These enablers reside either in institutions themselves or in interfaces with the MNE. Furthermore, I show how these enablers may be lever-aged by subsidiaries to either avoid or become involved in headquarter strategic initiatives. This is done through distinct tactics that target different organizational rationales related to the complex relationship between MNEs, subsidiaries and local institutions. The study contributes to the litera-ture on global strategy and headquarters-subsidiary relationships by delineating the role of local institutions, as filtered through subsidiaries, in global strategy.
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