Russian Manufacturing Subsidiaries of Western Multinational Corporations: Support from Parents and Cooperation with Sister-Subsidiaries

Abstract

This article presents the results of a survey of executives of Russian manufacturing subsidiaries of Western multinational corporations (MNCs) regarding their relationship with parents and sister-subsidiaries. Manufacturing subsidiaries are dependent on parents to finance development projects. Accordingly, the subsidiary receives intensive support from the parent for all stages of implementation of such projects. Further, the intensity of cooperation with sister-subsidiaries strongly coincides with the intensity of support from the parent. However, a high intensity of cooperation with sister-subsidiaries was observed for subsidiaries established before 2009. Finally, several practical implications for new entrants into the Russian manufacturing industry are presented.

KEYWORDS:

• multinational corporations
• subsidiaries
• manufacturing
• Russia
• sister-subsidiaries
• corporate parents

ACKNOWLEDGMENT

This article is an output of a research project implemented as part of the Basic Research Programme at the National Research University–Higher School of Economics (HSE).