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Impact of product development on subsidiary strategy: A case in the brazilian automotive sector
(2012-01-05) AMATUCI, M.; Roberto Carlos Bernardes
This paper resumes the discussion concerning subsidiary strategy in the literature, from its conceptual subordination to the Multinational Corporation's (MNC) strategy to the conceptualisation of Centres of Excellence (CE), as well as an analysis of the impact of Product Development (PD) in Brazilian subsidiaries of MNCs in the automotive sector. The study was performed on two automakers that developed vehicles in Brazil, General Motors do Brasil (GMB) and Volkswagen do Brasil (VWB), using Grounded Theory techniques. Results indicate that subsidiaries earned specialised global mandates in the engineering area and became Specialised CEs. Evidence suggests that the maturity level reached by these subsidiaries has eliminated the technological gap between the subsidiary and its headquarters, indicating the end of the international product life-cycle in these subsidiaries. Evidence also suggests that the path to evolution for the subsidiary and the subsidiary-headquarters relationship is relevant to the final extent of the subsidiary's new role.