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Journal ArticleDOI

Rethinking the literature on “multiple embeddedness” and subsidiary-specific advantages

Alberto Ferraris
- 25 Jul 2014 - 
- Vol. 22, Iss: 1, pp 15-33
TLDR
In this article, the authors synthesize the literature on embeddedness of MNE subsidiaries, rethinking the concept of multiple embeddedness in order to clarify the importance of the subsidiary-specific advantages.
Abstract
Purpose – This paper aims to synthesize the literature on embeddedness of MNE subsidiaries, rethinking the concept of “multiple embeddedness” in order to clarify the importance of the subsidiary-specific advantages. Design/methodology/approach – A new and innovative framework based on four key relationships: home country-specific advantages (CSAs)-Headquarters (HQ); HQ-subsidiary; subsidiary-host CSAs; and subsidiary-HQ. This framework is used to discuss the complex phenomenon of “multiple embeddedness”. Findings – The framework proposed sheds light on the subsidiary's need to develop and sustain over time its subsidiary-specific advantages (SSAs) and, where possible, to “upgrade” these SSAs and to integrate them across the entire network of the MNE. The framework is based on two pillars. The first one is the “creation and development” of firm-specific advantages (FSAs) (in the home country) and SSAs (in the host country); the second one is the “transfer” of these advantages from the parent to the subsidi...

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Citations
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