Business & Economics
- © Vilnius University, 2002-2008
- © Brno University of Technology, 2002-2008
- © University of Latvia, 2002-2008
Factors Determining Creation of Competitive Advantages in the Subsidiaries of International Enterprises
Viltė Auruškevičienė, Laura Šalčiuvienė, Jurgita Vanagė
ABSTRACT. This study defines roles of international subsidiaries, identifies key factors determining the development of competitive advantages within subsidiaries of international enterprises and empirically examines these factors exhibited in a sample of Lithuanian subsidiaries of international enterprises in business-to-business sector. The results of the empirical study support the idea that the use of contextual mechanisms, such as control or coordination, to define differentiated subsidiary roles has its limitations and should be no more seen as the most important in defining “enterprise centre – subsidiary” relationships. In opposite, international enterprises should focus on developing capabilities and enhancement of personnel related issues, since the subsidiaries have much broader role than previously envisioned.
KEYWORDS: key factors, competitive advantages, subsidiary, services industry, B2B sector, Lithuania.
JEL classification: L10, M16, P2.