Interregional expansion in Iberoamerica: value creation through springboard subsidiaries

Abstract

Recently, from the business sector different claims have emerged highlighting the intangible value that Spain could offer as a "springboard" in the process of interregional expansion of European multinationals towards Latin America. In this study we provide theoretical and empirical content to this reality, offering a general overview of the profile of the springboard subsidiary and its characteristics through a sample of 188 subsidiaries located in Spain. We provide guidance to business practice facilitating legitimacy in their investments in foreign regions, particularly in emerging countries where there is a greater risk of loss of value.

Keywords:

springboard subsidiary, multinationals, Latin America, interregional expansion, experiential knowledge