How subsidiaries contribute to MNC’s resilience under global disruptions

Purpose This paper explores how the organizational resilience of multinational corporations (MNCs) can be attained through mitigating the liability of foreignness (LOF) faced by their subsidiaries so that they can navigate challenges more effectively. By bridging the gap between MNC resilience and the liability and advantage of foreignness of their subsidiaries, this study aims to provide a comprehensive understanding of how MNCs can thrive in volatile and uncertain international markets. Design/methodology/approach By drawing on the extant literature on resilience and liability/advantage of foreignness, this paper presents a novel perspective on the way resilience of subsidiaries contributes to the resilience of the MNCs as a whole. Findings Subsidiaries contribute substantially to the resilience of MNCs by creating a network of adaptive responses in their host locations and beyond and by playing crucial roles in challenging uncertain and turbulent environments. Accordingly, the resilience of foreign subsidiaries depends on their organizational capability and certain structural arrangements that enable them to turn LOF into advantage. This intricate interplay emphasizes the importance of subsidiary-level resilience in shaping the resilience of the entire MNC. Originality/value This paper emphasizes the importance of paying attention to the resilience of the whole MNC while stressing the important role played by the subsidiaries to turn the LOF into the advantage.