I don’t use this blog enough to promote my research output. So I thought I’d draw your attention to a book chapter/paper that recently hit the streets:
Elizabeth Maitland & Andre Sammartino (2009) ‘Subsidiaries in Motion: Assessing the impact of sunk vs. flexible assets‘, Advances in International Management, Volume 22,pp.55–83
In good old academic jargon, we claim to be tackle the following:
“…an unresolved theoretical issue in international business: the impact of existing,committed assets in a host location on parent and subsidiary decisions regarding the configuration of future value-adding activities for the location.”
The paper adapts a framework proposed in the strategic management domain (by Ghemawat and Del Sol (1998)) to explicitly incorporate location issues. This allows us to explore the level of commitment (or locked-in-ness) a firm has to operating in a particular location. We believe this is an important addition to current IB theory which says a lot about entry and too little about reconfiguration.
We are currently working on a more manager-friendly take on this story, rich in examples and toolkit elements. I’ll make sure to trumpet its arrival on your local newstand if and when that occurs.