Keywords
Multinational enterprises
Digitalization
Subsidiary
Submitted : 2022-04-30
Accepted : 2022-05-15
Published : 2022-05-30
Abstract
Digitalization can induce the structural changes of multinational enterprises (MNEs), therefore, it is important to reconsider their internal organization. In this paper, the changes in the roles of the subsidiaries of MNEs due to digitalization was investigated. By adopting the internalization theory perspective, the local organizations, including the market demand, the digital technology, infrastructure platform, the institutional systems of the host country, including the legitimacy, substantial institutions, and symbolic rules, in contributing to the changes in the role of subsidiaries was also illustrate in this paper. Additionally, the implications of the framework on entry mode, knowledge transfer and other research issues was also discussed in this paper.
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