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Subsidiary survival: a case study from the Portuguese electronics industry

dc.contributor.authorSilva, Pedro
dc.contributor.authorMoreira, Antonio
dc.date.accessioned2026-02-19T16:10:17Z
dc.date.available2026-02-19T16:10:17Z
dc.date.issued2019-09-02en_US
dc.date.updated2026-01-27T00:53:33Z
dc.description.abstractPurpose – The existing literature suggests that multinational corporations (MNCs) divest subsidiary units whenever they cease to enjoy the advantages of ownership, location or internalization. However, not all MNCs divest under these conditions. This paper aims to explore the factors that contributed to the survival of a particular subsidiary and prevented it from being divested. Design/methodology/approach – The analysis focuses on an individual subsidiary of a large foreign MNC in the electronics industry, which divested other subsidiaries from Portugal. Data were collected using semi-structured interviews. Findings – The subsidiary’s diverse customer base, specificity and high level of efficiency, the local advantages, the existing governmental agreements and the parent MNC’s previous unsuccessful relocation experiences seem to have contributed to the survival of the subsidiary. Research limitations/implications – Although the results of the case study are not generalizable to the entire population of firms, the featured case study is a rare survival success story in the Portuguese electronics industry. Practical implications – The proposed framework may offer public authorities measures to create conditions to encourage firms to retain their investment in a particular site. For corporate strategists, new perspectives on subsidiary survival are provided. Originality/value – This paper is one of the few qualitative studies in the field of subsidiary survival. The results offer an integrative framework on which factors contribute to the survival of a subsidiary located on a comparatively unfavorable labor cost location and support the role of the organizational learning and of previous failed relocation experiences and relocation barriers when a parentMNC decides whether to retain a unit.eng
dc.description.sponsorshipThis work was supported by the Fundação para a Ciência e a Tecnologia (FCT) by means of a PhD scholarship (Grant No. SFRH/BD/115337/2016).
dc.description.versioninfo:eu-repo/semantics/publishedVersion
dc.identifier.doi10.1108/ribs-10-2018-0094en_US
dc.identifier.issn2059-6014en_US
dc.identifier.slugcv-prod-1607524
dc.identifier.urihttp://hdl.handle.net/10400.2/21385
dc.language.isoeng
dc.peerreviewedyes
dc.relationEssays on Divestment: A Stakeholder Approach
dc.rights.uriN/A
dc.subjectForeign direct investment
dc.subjectElectronics industry
dc.subjectForeign divestment
dc.subjectSubsidiary survival
dc.titleSubsidiary survival: a case study from the Portuguese electronics industryeng
dc.typejournal article
dspace.entity.typePublication
oaire.awardTitleEssays on Divestment: A Stakeholder Approach
oaire.awardURIhttp://hdl.handle.net/10400.2/21379
oaire.citation.endPage252
oaire.citation.issue3en_US
oaire.citation.startPage226
oaire.citation.titleReview of International Business and Strategyen_US
oaire.citation.volume29en_US
oaire.versionhttp://purl.org/coar/version/c_970fb48d4fbd8a85
person.familyNameSilva
person.familyNameMoreira
person.givenNamePedro
person.givenNameAntonio
person.identifier.orcid0000-0002-0816-1402
person.identifier.orcid0000-0002-6613-8796
rcaap.cv.cienciaid541F-5442-5666 | António Carrizo Moreira
rcaap.rightsrestrictedAccessen_US
relation.isAuthorOfPublication1ab38147-7adf-4012-ad2b-77a84e34c018
relation.isAuthorOfPublication51ad303d-335c-4e2f-bae3-fffffef2e2f5
relation.isAuthorOfPublication.latestForDiscovery1ab38147-7adf-4012-ad2b-77a84e34c018
relation.isProjectOfPublication6d51e56b-e7b0-4cdc-acc6-d4fafdf8830c
relation.isProjectOfPublication.latestForDiscovery6d51e56b-e7b0-4cdc-acc6-d4fafdf8830c

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