Marketing

Context (archaeology)

Ecology

Pure mathematics

Strategic management

Biology

Statistics

Economic system

Global strategy

Archaeology

Dimension (graph theory)

Economics

Computer science

Business

Computer network

Paleontology

Economic geography

Competition (biology)

Subsidiary

Process management

Mathematics

Survey data collection

Geography

Industrial organization

Multinational corporation

Finance

Resource (disambiguation)

Global Strategy Journal

The integration‐responsiveness ( IR ) framework is a leading analytical tool of global strategy but it is less valuable in explaining the heterogeneity of strategic choice for subsidiaries within an MNE . We propose an IRE framework of subsidiary strategy that complements the IR framework for the subsidiary level with a third dimension—selling to local versus export markets ( E ). Resource‐based considerations suggest that subsidiary strategies must fit the resources both the parent MNE and the local context. We examine how our three dimensions of subsidiary strategy are locally contingent. We suggest that local resource endowments, local competition, and the distance between the home and host country influence the use of responsiveness and exporting strategies, but influence integration strategies only to a small degree. We find empirical support for hypotheses developed from these arguments using survey data from MNE subsidiaries in two Central and Eastern European economies.

Local Context and Global Strategy: Extending the Integration Responsiveness Framework to Subsidiary Strategy