ABSTRACT
This chapter discusses digital transformation in Multinational Enterprises (MNEs) from a strategic viewpoint and argues that the MNE headquarters’ digital transformation strategy can affect the influence of the MNE’s subsidiaries within the firm group. MNE digitalisation has different effects, depending on the emphasis on ‘high-tech’ or ‘high-touch’ capabilities. Further, the subsidiary’s influence depends on its internal embeddedness and involves both relational and structural components, which define the subsidiary’s entrepreneurial behaviour. The proposed conceptual framework includes subsidiary influence and digital transformation strategy dimensions. It provides recommendations for managers and calls for further theorising and testing the potential implications of digitalisation for MNEs.
