Corporate competences in subsidiaries of Brazilian multinationals

Abstract

Emerging multinationals must seek and develop competences abroad and develop the skills to transfer such competences faster and more actively than traditional multinationals. This article aims to further the understanding of the development, transfer, and recognition processes of the competences of emerging multinationals' subsidiaries. Based on a review of the literature, a model was developed focusing on the relationships between (i) the strategic guidelines designed by corporate headquarters for subsidiaries (integration, entrepreneurial attitude), (ii) the management of subsidiaries (initiative), and (iii) the management of subsidiaries' relationships with the external environment (competitive context and external network). The model was applied to a survey of Brazilian multinationals and their subsidiaries. The results showed that the variables competitive context and external network (in which the subsidiary is embedded) are the most important for competence development, transfer to and recognition by the headquarters; the variable subsidiary initiative is important for recognition by headquarters only. © Taylor and Francis Group, LLC.