Co-Parenting: A Model of Value Creation in the Multinational Network

Abstract

We analyze a novel way to configure and manage multinational networks and propose a model of "co-parenting", characterized by the sharing of parenting roles and distribution of responsibilities between two units. We develop our argument around the notion of the springboard subsidiary, which has an extra-regional geographic mandate of a more strategic nature. Such extra-regional headquarters help parent firms overcome the liability of inter-regional foreignness. Based upon qualitative data, our model revolves around three stages: establishment, consolidation and maturity, each of which reflects distinct roles and knowledge flows among the three actors involved: HQ, springboard subsidiary and local subsidiary. Overall, our study sheds distinct light on when and how headquarters add value by matching parenting to context.