Longstanding subsidiaries of multinational enterprises (MNEs) remain one of the most undertheorized organizational forms in international business. Much of the literature focuses on market entry modes, subsidiary roles and mandates, and headquarters control mechanisms – particularly in the early stages of market entry – with little regard to the long-term evolution of foreign subsidiaries as they persist through institutional reforms, corporate strategy cycles, and political transitions. We conceptualize longstanding subsidiaries as a distinct category within MNEs, identify longevity as their defining characteristic, and reposition longevity as an outcome of repeated cycles of adaptation, renewal, and reconfiguration over time. We challenge common assumptions within the international business literature and propose that a theory of subsidiary longevity requires a temporal lens encompassing at least four dimensions: legitimacy over time; strategic identity and role reconfiguration; embeddedness and autonomy; and organizational memory and decision-making.
Arndt et al. (Sun,) studied this question.