Relationship development in Greenfield expansions

Rian Drogendijk*, Ulf Andersson

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

10 Citations (Scopus)

Abstract

This paper investigates conceptually how new Greenfield subsidiaries develop relationships over time. We focus our analysis on the earliest start-up stage of new Greenfield subsidiaries, and on the dynamics of relationships development with five different groups of actors within the MNC and the local environment of the new Greenfield. We argue that relationship strength, or the intensity of interaction and resource exchange, depends on the new Greenfield's degree of dependence or interdependence within these relationships and develop propositions based on institutional theory, resource dependency theory and network approaches. In the concluding sections we suggest directions for future work to enhance understanding of the dynamics of relationship management in new Greenfield expansions. (C) 2012 Elsevier Ltd. All rights reserved.

Original languageEnglish
Pages (from-to)381-391
Number of pages11
JournalInternational Business Review
Volume22
Issue number2
DOIs
Publication statusPublished - Apr-2013
Externally publishedYes

Keywords

  • Greenfield expansion
  • HQ-subsidiary relations
  • Institutional theory
  • MNC management
  • Networks
  • Subsidiary development
  • MULTINATIONAL-CORPORATIONS
  • INTERORGANIZATIONAL RELATIONSHIPS
  • COMPETENCE DEVELOPMENT
  • LIFE-CYCLE
  • KNOWLEDGE
  • DYNAMICS
  • SUBSIDIARIES
  • CAPABILITIES
  • FOREIGNNESS
  • LIABILITY

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