Subsidiary

1
Figure 7.1 Transferring subsidiary resources to
the multinational
Subsidiary resources
Can be transferred (not location bound)
Superior to elsewhere in multinational?
no
yes
Recognized by the multinational?
no
Cannot be transferred (location bound)
yes
Effectively used by the multinational?
no
yes
Part of multinationals firm-specific advantage
Source adapted from Birkinshaw et al (1998)
2
Figure 7.2 Correlation in cultural
characteristics
Data source Hofstede (2003) the 30 countries
listed in Table 7.4 are depicted.
3
Figure 7.3 Increase in taxes if used to prevent
environmental pollution
4
Figure 7.4 Acquisition waves 1895-2012
Source updated figure provided by McCarthy
(2011, p.16).
5
Figure 7.5 Distance distribution of IKEAs first
stores over time, 1963-2011 European countries
(square) and other countries (circle
Data sources www.ikea.com for first stores,
www.distance-calculator.co.uk for distances from
Almhult to first store locations, and
www.cepii.fr for worldwide average distance to
Sweden. Regression lines for European countries
significant, for other countries not significant
overall regression significant for cultural
distance, not for geographic distance. Average
distance from Sweden to 224 other countries is
6826 km average distance from Almhult to first
stores is 3763 km
6
Figure 7.5 Distance distribution of IKEAs first
stores over time, 1963-2011 European countries
(square) and other countries (circle
Data sources www.ikea.com for first stores,
www.distance-calculator.co.uk for distances from
Almhult to first store locations, and
www.cepii.fr for worldwide average distance to
Sweden. Regression lines for European countries
significant, for other countries not significant
overall regression significant for cultural
distance, not for geographic distance. Average
distance from Sweden to 224 other countries is
6826 km average distance from Almhult to first
stores is 3763 km