Establishment modes and network relationships of foreign subsidiaries
Résumé
This research examines how the establishment mode of foreign subsidiaries (greenfield vs acquisition) influences the type of network relationships (social vs business) they develop in local markets. The authors use the network approach to better understand the role played by local subsidiaries for the development of networks in multinational enterprises. The empirical study is based on a dataset covering 42 foreign subsidiaries located in Italy. The results show that acquired subsidiaries are more likely to engage in business relationships than greenfield subsidiaries. In contrast, greenfield subsidiaries tend to pay more attention to social relationships than acquired subsidiaries.