Subsidiary redefinition: Charter loss in a German-owned subsidiary in Hungary

Arbeitspapier

Based on a literature review and a single case study approach, this paper provides insights into the actors, interests and dynamics of charter losses. It reports the results of interviews with 20 managers at different units of Siemens ICN (Information & Communication Network division) in Germany, Hungary and Austria, including the Hungarian subsidiary where the charter loss occurred, the German headquarters, and the main competing subsidiaries. Furthermore, the paper sheds light on the questions: to what extent and by what combination of host country, subsidiary-related and MNC structural and organizational factors do situations develop in which a subsidiary loses its charter. Our findings show that there is no single reason for a charter loss, but multiple interdependent reasons subject to divergent interpretations, reflecting the micropolitical interests of the key actors. The case study further elucidates that there is room for strategic action at the subsidiary level to avert a charter loss, whereby anticipatory adjustment of the subsidiary towards more balanced internal and external embeddedness as well as constant interpersonal networking with the headquarters office are two important prerequisites.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: WZB Discussion Paper ; No. SP III 2006-201

Classification and Topics

• Classification: Sozialwissenschaften, Soziologie, Anthropologie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Dörrenbächer, Christoph ; Gammelgaard, Jens
• Event: Veröffentlichung
• (who): Wissenschaftszentrum Berlin für Sozialforschung (WZB)
• (where): Berlin
• (when): 2006

Further information

• Handle: http://hdl.handle.net/10419/48957
• Last update: 10.03.2025, 11:42 AM CET