The overlooked distinction of multinational enterprise subsidiary learning: Its managerial and entrepreneurial learning modes |
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| Institution: | 1. University of Glasgow, Adam Smith Business School, University Avenue, Glasgow G12 8QQ, UK;2. Department of Business Administration, School of Economics, Aristotle University of Thessaloniki, Thessaloniki, Greece;3. Förbom Properties, Tikanmaankatu 76, 21210 Raisio, Finland;1. The Business School, University of Colorado Denver, Denver, CO 80217, USA;2. SolBridge International School of Business, Daejeon 300-814, Republic of Korea;3. Bill Greehey School of Business, St. Mary''s University, San Antonio, TX 78228, USA;1. Department of Economics, Management and Industrial Engineering, GOVCOPP, University of Aveiro, 3810-193 Aveiro, Portugal;2. Department of Economics, Management and Industrial Engineering, University of Aveiro, 3810-193 Aveiro, Portugal;3. Faculty of Economics of University of Porto, Rua Dr. Roberto Frias, 4200-464 Porto, Portugal;1. Department of Management, College of Business and Public Administration, Old Dominion University, 2167 Constant Hall, Norfolk, VA 23529, United States;2. School of Management, University of Michigan-Flint, 2118 Riverfront, 303 E. Kearsley Street, Flint, MI 48502-1950, United States;3. School of Business, Southern Illinois University Edwardsville, Box 1051, Edwardsville, IL 62026-1051, United States;4. Turner College of Business, Center for Commerce & Technology 432, Columbus State University, 4225 University Avenue, Columbus, GA 31907, United States;1. Marketing Department, Eastern Michigan University, Ypsilanti, MI 48198, USA;2. Institute of International Business, Georgia State University, Atlanta, GA 30303, USA |
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| Abstract: | The theme concerning modes of learning in multinational subsidiaries is the focus of enquiry in the current study. This theme is closely linked to the issue of how subsidiaries become alert and seize opportunities. Such an investigation is also important for management practice because effective subsidiary learning can render sustainable competitive advantage in the host country. We performed an in-depth case examination on six multinational subsidiaries of a large Finnish firm. We identify two learning modes of multinational subsidiaries that we refer to as managerial and entrepreneurial learning. We find that managerial learning shares characteristics with the systems-structural learning perspective; is facilitated by embeddedness of the subsidiary in the MNE system; and, transferred in the MNE through many conventional and reverse knowledge flows. On the contrary, entrepreneurial learning shares characteristics with the interpretive learning perspective; is facilitated by embeddedness of the subsidiary in the host country; and, transferred in the MNE through relatively fewer reverse knowledge flows. The distinction between these two learning modes and their discrete characteristics enlighten past research that has largely failed to pinpoint the importance of the two modes for MNE subsidiary activities. |
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| Keywords: | Entrepreneurial learning Managerial learning Multinational enterprise Subsidiary |
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