The parent-subsidiary relationship. International technology cooperation: the fiat auto case

Abstract

The role of the subsidiaries, in the decision making process of international technology alliance operation and its execution, has increasingly become a critical factor for the success of the operation itself. The objective of this paper is to explore the factors that can influence the role of the subsidiary on the effectiveness of international technology cooperation. The work focused on three different international technology alliances in the Fiat Group Automobiles, representing different directions in the process and information flows within the parent-subsidiary relationship. The case study method was applied to investigate these three selected alliances. Interviews were conducted with top management of FIAT in Brazil and in Italy. The findings have been summarized into four main “lessons” and they are discussed vis-a-vis the extant literature. From the theoretical viewpoint, these factors highlight further potential contributions to the current streams of research on MNCs and their process of technological innovation.