• Effective autonomy, organisational relationships and skilled jobs in subsidiaries.

      McDonald, Frank; Gammelgaard, J.; Tüselmann, H-J.; Dörrenbächer, C.; Stephan, A. (2011)
      Abstract Purpose ¿ The purpose of this paper is to explore how the proportion of skilled jobs in subsidiaries is influenced by resource gaps created by subsidiary development. Design/methodology/approach ¿ This paper develops a range of propositions that connect the constructs of effective autonomy and organisational relationships with subsidiary employment. Propositions are built on an extensive literature review based on such approaches as the resource-based view, transaction cost economics, network approach, and institutional theory. Findings ¿ The framework developed in the paper suggests that a higher proportion of employment in skilled jobs in subsidiaries is most likely in cases where subsidiary entrepreneurship, role specialization, and absorptive capacity are higher. Conversely, the proportion is likely to be lower in cases of increased institutional distance from the parent company. Practical implications ¿ The conceptual model can help parent company managers assess the likely effects of developments in effective autonomy and organisational relationships in their subsidiaries. Subsidiary managers can assess the possible impact of such factors as development of entrepreneurial activities, specialization within the multinational corporation supply chain and enhancement of absorptive capacity on the proportion of skilled jobs. Originality/value ¿ This paper is the first to describe subsidiary development from a skilled job perspective. It further develops the concept of autonomy and introduces the term ¿effective autonomy¿.
    • The impact of autonomy and organisational relationships on subsidiary employment of skilled labour

      McDonald, Frank; Tüselmann, H-J.; Gammelgaard, J.; Dörrenbächer, C.; Stephan, A. (2007)
      The paper develops a conceptual model on relationship between the strategic development of subsidiaries, in developed economies, and the development of higher valued operations that leads to increased employment of skilled labour. A concept of effective autonomy is developed in the paper. Effective autonomy is conceived as the ability of the subsidiary to implement and finance its desired increase in skilled labour. The interrelated effects between effective autonomy and intra and inter organisational relationships and employment of skilled labour are found to be uncertain because effective autonomy can be supportive of the development of intra and inter organisational relationships that requires a higher proportion of skilled labour, but effective autonomy can lead to deterioration in intra-organisational relationships thereby leading to a more peripheral role played by the subsidiary thus lowering the need for skilled employment. The conceptual model is based on changes in effective autonomy and intra and inter organisational relationships and is therefore set in the context of the evolution of the development of subsidiaries.
    • Subsidiary Role and Skilled Labour Effects in Small Developed Countries

      McDonald, Frank; Gammelgaard, J.; Tüselmann, H-J.; Dörrenbächer, C.; Stephan, A. (2009)
      The proportion of skilled labour in subsidiaries is influenced by size and development of host country, and subsidiary role, the latter being connected to autonomy and intra-organisational relationships. In this paper, we conceptually explore subsidiary¿s proportion of skilled labour in relation to subsidiary role within the context of a small developed country. Specifically, we draw on the literature of strategic development of multinational corporations, and insights of inward foreign direct investments in small developed countries. This is presented in a unifying framework in order to predict diverse categorizations of subsidiary role¿s impact on the proportion of skilled labour in subsidiaries.