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Despite its theoretical and managerial significance, subsidiary entrepreneurship and its effects 15 on subsidiary contribution remain underexplored in the literature.We propose that subsidiary 16 entrepreneurship encourages more creative strategic responses to escalating environmental 17 change. We explore the direct and mediating effects of subsidiary entrepreneurship on 18 subsidiary contribution to the MNC, particularly subsidiary strategy creativity. We use 19 structural equation modelling to test our propositions on data generated from surveying the 20 population of Irish subsidiaries of foreign MNCs, and find strong support for our theoretical 21 predictions. The managerial implications of subsidiary entrepreneurship in generating creative 22 strategy, prompting strategic initiatives and improving performance are discussed.