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Strategic drivers behind the digital transformation of subsidiaries : a longitudinal approach

Városiné Demeter, Krisztina ORCID: https://orcid.org/0000-0002-5967-8540, Losonci, Dávid ORCID: https://orcid.org/0000-0003-0073-7849, Szalavetz, Andrea and Baksa, Máté ORCID: https://orcid.org/0000-0002-0834-4727 (2023) Strategic drivers behind the digital transformation of subsidiaries : a longitudinal approach. Post-Communist Economies, 35 (7). pp. 744-769. DOI 10.1080/14631377.2023.2236864

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Official URL: https://doi.org/10.1080/14631377.2023.2236864


Abstract

This study explores the strategic drivers of digital transformation (DT) at subsidiaries. Our research framework derives strategic drivers from a tripod model that integrates the resource-based, the institution-based, and the industry-based views. We use two longitudinal case studies at global automotive suppliers’ Hungarian subsidiaries. We found that each view highlights a different set of strategic drivers. DT in the subsidiaries is boosted by proactive local management and mature process improvement routines (dynamic capabilities); parent–pull relation (internal institutions) and state support attracting manufacturing FDI (external institutions); as well as buyers’ increasing expectations and supplier-related factors (industry-based view). By combining these views, we claim that drivers related to the external institutional context and the industrial competition are usually filtered by the global management before contributing to resource adjustments at subsidiaries in a coercive top-down manner. Despite this seemingly deterministic DT process, local managements can actively shape DT, even that of the MNE.

Item Type:Article
Uncontrolled Keywords:strategic drivers; digital transformation; subsidiary; dynamic capabilities; institution-based view; case study
Divisions:Institute of Operations and Decision Sciences
Institute of Strategy and Management
Subjects:Automatizálás, gépesítés
Computer science
Funders:Hungarian National Scientific Research Fund
Projects:K138846 and K135604
DOI:10.1080/14631377.2023.2236864
ID Code:10970
Deposited By: MTMT SWORD
Deposited On:27 Feb 2025 15:38
Last Modified:27 Feb 2025 15:38

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