Abstract:
This paper examines how subsidiaries in multinational corporations (MNCs) reposition themselves within global R&D networks by leveraging managerial influence and locational advantages. Through a case study of a German automotive OEM’s R&D operations in Japan and India, we analyze how subsidiaries with initially limited mandates develop strategies to expand their influence and secure a stronger role within the R&D network. Building on Birkinshaw’s framework on charter evolution, this study extends the understanding of subsidiary mandate development by integrating issue-selling strategies and the role of managerial agency in driving mandate changes. We highlight how subsidiary managers actively shape mandate evolution through negotiation, strategic alignment, and internal lobbying. The findings indicate that while access to resources is a fundamental condition for mandate expansion, the ability to advocate for and legitimize a subsidiary’s strategic importance within the corporate structure plays an equally critical role. By comparing the approaches taken in Japan and India, this study provides insights into how subsidiaries can alter power dynamics within MNC networks and influence the distribution of innovation mandates.
