• Employee Relations in Foreign-Owned Subsidiaries: German Multinational Companies in the UK.

      McDonald, Frank; Tüselmann, H-J.; Heise, A.; Allen, M.; Voronkova, S. (2007)
    • The persistence of outward foreign direct investment from German Manufacturing Industries.

      McDonald, Frank; Tüselmann, H-J.; Bohl, M.; Voronkova, S.; Windrum, P. (2011)
    • The strategic development of foreign owned subsidiaries and direct employment in the UK

      McDonald, Frank; Tüselmann, H-J.; Voronkova, S.; Dimitratos, P. (Pion, 2005)
      The authors use international business strategy and regional development literature to inform a set of propositions about the links between direct employment by foreign-owned subsidiaries in the manufacturing sector and the development of embeddedness and autonomy in these subsidiaries. A large-scale survey of French, German, and US manufacturing subsidiaries in the United Kingdom is used to test the importance of embeddedness (host-country sourcing and use of networks) and autonomy (decisionmaking and operational autonomy) for the growth of employment by foreign-owned subsidiaries and the growth of skilled jobs in such subsidiaries. The results indicate that growth of embeddedness and autonomy factors are important, especially for the growth of skilled jobs, but those subsidiaries that have this attribute are a minority of foreign-owned subsidiaries. In the light of these results, the authors argue that policies need to be geared towards developing embeddedness and encouraging the growth of autonomy in subsidiaries that are likely to be regarded as central to the overall objectives of multinational corporations (MNCs). This requires policymakers to be aware of the internationalisation strategies used by MNCs, particularly in the light of the emergence of new, low-cost, countries which can easily provide high-quality but low-cost manufacturing operations. An important conclusion is that simple promotion of networking among firms and supporting agencies, and attempts to improve the local asset pool are unlikely to be effective in most cases.
    • The Strategic Development of Subsidiaries in Regional Trade Blocs.

      McDonald, Frank; Tüselmann, H-J.; Voronkova, S.; Golesorkhi, S. (2011)
      Purpose This paper explores the relationships between the strategic development of subsidiaries and the likelihood of subsidiaries exporting on an intra-regional basis to European markets. Research Approach The paper defines the strategic development of subsidiaries as increases in, autonomy, embeddedness in host locations, the use of networks and host country sourcing. The location of subsidiaries in industrial clusters is also considered. Use is made of multinomial probit analysis of a survey of 391 UK based subsidiaries to identify the relationships between the strategic development of subsidiaries and supplying European markets. Findings The study finds some evidence that there are links between increasing networks and supplying European markets, but there is no evidence that developing host country sourcing is associated with European supply. Location in an industrial cluster is consistently associated with supplying European markets and autonomy also appears to be closely associated with supplying European markets. Research Limitations Extension of the research is required to other regional trade blocs such as Mercosur and NAFTA. The role of networks and the links to location in industrial clusters requires further exploration and future research needs to include the services and knowledge-intensive sectors. Value The paper extends our understanding of subsidiary development in the context of intra-regional trading and thereby expands the literature on the regional strategy of multinationals. It highlights the importance of different types of autonomy for encouraging intra-regional trade by foreign-owned subsidiaries, and the central role of location in industrial clusters.