The relational embeddedness in the context of multinational subsidiaries: in search of new avenues

Abstract

Purpose

The scholarly discourse concerning the significance of relational embeddedness within multinational corporation (MNC) subsidiaries has reached a stage of maturity, albeit with fragmentation. In light of this, this paper aims to delineate hot topics that can serve as a promising research trajectory for future investigations into the phenomenon of relational embeddedness in MNC subsidiaries.

Design/methodology/approach

Through a systematic literature review, the authors examined 66 articles published between 1998 and 2022, sourced from two prominent databases: Scopus and Web of Science. To ensure the rigor of the investigation, the authors specifically focused on articles published in journals accredited with a minimum two-star rating according to the ABS (2021) criteria.

Findings

In the systematic review, the authors delineated four principal themes addressed in the literature concerning subsidiaries and relational embeddedness. Within these themes, the authors identified five underexplored research avenues that hold promise for future studies on relational embeddedness within the context of subsidiaries: (a) the question of the dark side of relational embeddedness, (b) the development of a global construct for relational embeddedness, (c) understanding how the social factors of relational embeddedness relate to each other, (d) the gains that local partners have in developing relational embeddedness with subsidiaries of foreign MNCs and how this relationship is moderated by the institutional environment and (e) the impact of internal.

Research limitations/implications

While this study drew upon two major databases, future researchers are encouraged to explore alternative repositories to ensure the thoroughness of the findings. Another limitation of this study pertains to the chosen set of keywords, which did not encompass literature on innovation collaboration or knowledge flows within foreign subsidiaries. These areas are interconnected with the knowledge management literature and relational embeddedness, warranting attention in future investigations.

Practical implications

The managerial insights cater to two distinct cohorts: multinational subsidiary managers, equipping them with insights into leveraging relational strategies effectively and managers of partner companies, facilitating informed decision-making in optimizing access to subsidiary knowledge and resources.

Originality/value

In addition to facilitating the consolidation of fragmented literature, this study has identified five theoretical gaps that remain insufficiently explored within research utilizing the relational embeddedness framework in the context of MNC subsidiaries. Consequently, this research serves as an inaugural step for future investigations, elucidating specific avenues ripe for further exploration in the field.

Citation

Isaac, V.R., Borini, F.M. and Oliveira Jr., M.d.M. (2024), "The relational embeddedness in the context of multinational subsidiaries: in search of new avenues", Multinational Business Review, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/MBR-09-2023-0152