Foreign subsidiary performance in multinational enterprises: the role of business development capabilities and resource deployment

Nguyen, Q. T. K. ORCID: https://orcid.org/0000-0003-0179-3973 and Almodóvar, P. (2025) Foreign subsidiary performance in multinational enterprises: the role of business development capabilities and resource deployment. Journal of International Management, 31 (3). 101251. ISSN 1873-0620 doi: 10.1016/j.intman.2025.101251

Abstract/Summary

The research on subsidiary capability building highlights the importance of creating new capabilities in host countries while the resource management view emphasises effective resource structuring, bundling, and deployment actions to achieve competitive advantages and value creation. Building upon these theoretical advances, we develop a conceptual framework that examines the direct and combined impacts of subsidiary-level business development capabilities encompassing both product and market development, and resource deployment on the performance of foreign subsidiaries of multinational enterprises. We empirically test this framework using survey data from manufacturing and service subsidiaries, archival data from parent firms, and host country data from public sources. The empirical results support our hypotheses. We discuss the implications of our findings for both theory and practice.

Item Type	Article
URI	https://centaur.reading.ac.uk/id/eprint/122209
Identification Number/DOI	10.1016/j.intman.2025.101251
Refereed	Yes
Divisions	Henley Business School > International Business and Strategy
Publisher	Elsevier
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