6. Contributions, limitations and managerial implications
This study contributes to the literature on MNE subsidiary evolution by offering an in-depth case analysis of a sales subsidiary. We reveal that the role change and acquisition of innovation capabilities by the subsidiary were initiated by a subsidiary-driven project to develop a product for a customer. The project resulted in the subsidiary’s involvement with the customer firms’ new product development at an early stage,triggering mutual exchange of technical information between the customer and subsidiary, and the subsidiary and parent firm. The evolution process was examined from the perspective of the technology information flow in a customer-subsidiary-parent firm network from unidirectional to bidirectional flow. Future research on MNE subsidiary evolution should give more consideration to sales subsidiaries and ‘emergent’ strategies, and combine different theoretical perspectives.