Using Technology as a Path to Subsidiary Development

Subsidiary development deals with the evolution and growth of foreign subsidiaries after they are established, or.after initial foreign direct investment has occurred (Birkinshaw and Hood, 1997). Unlike the initial foreign direct investment decision, which necessarily is a HQ decision, subsequent subsidiary development decisions are open to both HQand subsidiary influence. This chapter is primarily concerned with how subsidiaries attempt to influence their own development, and how they use technology as a path to further such development. Based on recent research in Irish subsidiaries, the view taken is that Irish subsidiaries are increasingly using technology to further subsidiary development within multinational corporations (MNCs).