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Multinational Corporation Subsidiaries in China by Tim Hudson, Vipin Gupta, Jifu Wang, Jinghua Zhao

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3

Theoretical background

Abstract:

In this chapter, we review literature on MNC development strategies, including the study of MNC strategic management theory, MNC growth and development strategy, and cross-country perspectives. We also review works on the strategy of MNC overseas subsidiaries, including strategy–structure theory, the studies on the relationship between the parent and subsidiary companies, and the studies on subsidiaries’ development.

Key words

MNC development strategies

MNC strategic management

strategy–structure theory

parent company

subsidiaries

The theory of MNCs originated in response to the rapid development of Western multinational corporations after the Second World War (Hymer, 1996; Dunning, 1977; Lin, 1984). The ...

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