This paper compares two real options - within-country growth and across-country operational flexibility - to examine subsidiary expansioncontraction during times of economic crisis. Specifically, we examine how the real options orientations of individual subsidiaries interact with the general characteristics of multinational enterprise networks. Our main findings are that: (a) economic crises can be detrimental for subsidiaries with stronger within-country orientations, and advantageous for those with stronger across-country orientations; and (b) network characteristics are not the sole determinants of subsidiary expansioncontraction - what really matters is how the real options orientations of individual subsidiaries mesh with the overall characteristics of the network they belong to.
ASJC Scopus subject areas
- Business and International Management
- Business, Management and Accounting(all)
- Economics and Econometrics
- Strategy and Management
- Management of Technology and Innovation