International strategic alliances between port authorities from different institutional environments: the case of Brazil and the Benelux region
01 / 2011 - 01 / 2014
The literature in international business has suggested that expansion abroad is a natural progression in the process of organizational growth. It assumes that such development is beneficial to a firm in several ways. Though much has been written on how international business benefits firms, it is not clear whether international business is, in fact, good for companies (Contractor et al 2003, Contractor 2007), or whether they would be better off investing resources and time in their local market. The reply to this question demands an empirical investigation that aims to understand how foreign subsidiaries contribute to the parent company, if they add value, in which way this is assessed and how companies use that information if at all. The proposed research aims to understand whether and under which conditions, subsidiaries performance and corresponding indicators influence corporate strategy. In particular, it intends to investigate how relational and cognitive factors and the subsidiary mandate interfere in this relationship. This research contributes to theory by providing insights into the conditions that affect relationships between strategy and international performance, such as the strategic relevance of the subsidiary in terms of markets it covers, its responsibility to create strategic knowledge and whether the subsidiary mediates relationships between the host government and head office. This research contributes to knowledge on corporate strategy, by investigating the degree of interdependence between subsidiary performance and corporate resources allocation. The research design aims to contrast European multinationals (Dutch) with those from emerging economies (Brazilian multinationals preferably). The proposal is based on multi-methods, interviews and survey.