The Journey of Spanish subsidiaries as international springboards in Latin America

Abstract

This study examines the transformation of ordinary foreign multinational subsidiaries into springboard subsidiaries. Using a case study approach, the research examines three Spanish subsidiaries of European multinationals that, targeting the Latin American market, have transitioned into springboard subsidiaries. The findings reveal that this evolution is driven by several factors: favourable economic conditions in the target region; location-specific advantages such as the ability to reduce the psychic distance and effectively transfer knowledge; and micro-political negotiations processes as a result of the subsidiary’s strong initiative, peculiarities of the multinational structure and subsidiary’s unique capabilities.