New Publication: Academic Paper about Subsidiary Autonomy as Part of MNEs' Crisis Management Strategies (Authors: Andreja Jaklič, Iris Koleša, Gaja Mavri, Anže Burger)

Prof. dr. Andreja Jaklič, assist. dr. Iris Koleša, assist. Gaja Mavri and assoc. prof. Anže Burger (all from CIR at FDV UL) published a paper about the importance of adjusting the management of relations between subsidiaries and headquarters in a multinational enterprise (MNE) during global crises such as pandemics or wars. Their study shows that subsidiary autonomy as part of the MNE's crisis management strategy in Central and Eastern Europe (CEE) plays an important role in the resilience of subsidiaries and MNEs as a whole – even if this is predominantly focused on subsidiaries’ domestic markets during crises. Subsidiary autonomy can also foster subsidiary initiatives aimed at the search for new markets outside their region. It can moreover protect the subsidiary from the effects of a crisis in the home country of its headquarters to some extent and is thus advisable especially when the latter is heavily hit. However, subsidiary autonomy in itself does not guarantee successful risk and crisis management but rather needs to be complemented by other measures (e.g. those aimed at cost optimisation, competence development, product, service and process innovation, networking etc.).

The paper is part of the Economic and Business Review’s thematic issue on risk management practices of European companies in times of high global uncertainty and is freely available here: https://www.ebrjournal.net/home/vol26/iss4/3/.