Abstract

SIGALA PAPARELLA, Luis E  and  FIDEL, León Darder. Subsidiary Evolution Patterns in Volatile Environments . Revista Venezolana de Gerencia [online]. 2010, vol.15, n.50, pp.231-252. ISSN 1315-9984.

This paper applies and extends Birkinshaw and Hood’s evolution patterns for subsidiaries in a study of the influence of volatile environments on the evolutionary processes of multinational subsidiary corporations. Using qualitative methodology based on 41 study cases of subsidiaries from diverse sectors located in Venezuela, it was observed that the subsidiaries follow processes that lead to the improvement, reinforcement and the decline of their roles. Results identify the headquarters and the subsidiary itself as drivers for those processes, but they also appreciate the local environment as a determinant in subsidiary evolution, thereby extending the patterns Birkinshaw and Hood have proposed, which consider only the headquarters and the subsidiary. Conclusions highlight not only the importance of the environment in determining the role of the subsidiaries, but also the evidence that volatile environments can have a positive as well as a negative impact on subsidiary evolution.

Keywords : Venezuelan subsidiaries; volatile environment; multinational corporations; subsidiary evolution.