The strategic relevance of the Brazilian subsidiaries of multinationals corporations
By: OLIVEIRA JUNIOR, Moacir de Miranda
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Contributor(s): BORINI, Felipe Mendes
| GUEVARA, Arnoldo José de Hoyos
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Material type: ![materialTypeLabel](/opac-tmpl/lib/famfamfam/AR.png)
This article identifies organizational factors that influence the formation of strategically relevant subsidiaries. Strategic relevance is the expression used to describe the unique strategic importance of certain subsidiaries in relation to others, as a means of ensuring global competitive advantage. The organizational factors that theoretically influence strategic relevance are the organizational competencies of the subsidiary, its entrepreneurial orientation, the autonomy of the subsidiaries, and the integration of headquaters and subsidiaries. An exploratory study was conduced with a sample of 118 of the 1,000 largest subsidiaries of foreign corporations in Brazil. The main results show that the strategic relevance of foreign subsidiaries in Brazil depends particularly on subsidiaries' competencies in their interface with headquarters; on the communication between the subsidiaries and headquarters in terms of how well the subsidiaries' competences are understood by headquarters; and on the entrepreneurial orientation that headquarters allows their subsidiaries.
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