The purpose of this paper is to examine the role of location in the relationships established between headquarters and foreign subsidiaries.
The empirical study is based on three in‐depth case‐studies of French multinationals. The authors conducted 31 interviews with managers from both the headquarters and foreign subsidiaries.
The findings of the study indicate that headquarters‐subsidiaries relationships are shaped by the location of subsidiaries in emerging economies, and more specifically by the cultural, administrative, geographic and economic distance between the headquarters and foreign subsidiaries.
The analysis focuses on new challenges faced by multinational enterprises (MNEs) from mature economies, considering the growing importance of subsidiaries located in emerging countries.
