Subsidiary initiative and strategic choice in Indian software subsidiaries of multinational corporations

Abstract

In this paper, we investigate subsidiary initiative and strategic choice in the context of Indian software subsidiaries of multinational corporations. Contrary to earlier research, we find that high levels of subsidiary initiative are associated with subsidiaries that have low levels of integration and high levels of autonomy. We also find a new trend in the organizational arrangements of software subsidiaries within multinationals in that some multinational parents are allowing subsidiaries to chart their own destiny in return for a dilution of a part ( or whole) of their stake in the subsidiary.