1 Entrepreneurship in Multinational Subsidiaries: The Effects of Corporate and Local Environmental Contexts

Mounting evidence suggests that the entreprenurial activities of subsidiaries play a key role in determining the success of their parent multinational corporations (MNCs). However, little research has examined the factors that determine subsidiary entrepreneurship. This study presents a model of entrepreneurship, focusing on the corporate and local environmental contexts of subsidiaries. We hypothesize that the corporate context comprising global subsidiary mandates and control systems is an important determinant of subsidiary entrepreneurship. We also propose that the local environmental context comprising dynamism, hostility, and complexity influences a subsidiary's future entrepreneurship. We test the hypotheses using data collected at two points in time from 227 US-based foreig