Foreign subsidiaries as vehicles of industry 4.0: The case of foreign subsidiaries in a post-transition economy |
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| Affiliation: | 1. Poznań University of Economics and Business, Al. Niepodległości 10, 61-875, Poznań, Poland;2. Vistula University, Ul. Stokłosy 3, 02-787, Warszawa, Poland;1. Arison School of Business, The Interdisciplinary Center, Herzliya, Israel;2. Alliance Manchester Business School, The University of Manchester, Manchester, United Kingdom;3. Centre for International Business, Leeds University Business School, University of Leeds, Leeds, United Kingdom;1. National Research Base of Intelligent Manufacturing Service, Chongqing Technology and Business University, Chongqing, 400067, China;2. School of Business Management, Hongik University, Sejong, 30016, South Korea;3. Leeds University Business School, The University of Leeds, Leeds, LS2 9JT, UK;4. College of Business, Hankuk University of Foreign Studies, 270, Imun-dong, Dongdaemun-gu, Seoul, 130-791, South Korea;1. Texas A&M University, Dept. of Management, TAMU 4221, College Station, TX, 77843-4221, United States;2. Penn State University - Great Valley, School of Graduate Professional Studies, Malvern, PA 19355, United States;3. The University Of Texas - San Antonio, One Utsa Circle, San Antonio, TX 78249, United States;4. Penn State University – Berks, Reading, PA 19610, United States |
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| Abstract: | We ask whether foreign subsidiaries may work as entities that neutralize the threat of marginalization of the post-transition economies in terms of Industry 4.0 (I4.0) adoption. Building on a conceptual model of foreign subsidiaries as I4.0 vehicles, we conducted interviews with 440 foreign subsidiaries from the manufacturing sector established in Poland. The originality of the paper concerns three key issues. First, our study shows that the strategy adopted by the headquarters is critical, as it impacts the possibility of foreign subsidiaries to act as vehicles of I4.0 transformation in host economies. Second, embeddedness in local environment guarantees the transition of knowledge, whereas the innovation capacity of a foreign subsidiary does not seem to play any role. Third, we focus on foreign subsidiaries established in a post-transition economy. The results of our research enrich the literature on types of foreign subsidiaries in transmitting and diffusing the knowledge received from headquarters and expose the prominent role of links with host market entities. |
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| Keywords: | Foreign subsidiary (FS) Industry 4.0 (I4.0) Headquarter Knowledge Innovation Embeddedness |
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