This research study provides insights into “How to manage foreign subsidiaries in a multinational company (MNC) belonging to the German Mittelstand” by applying a contingency perspective. Existing MNC knowledge focuses on large MNCs whereas contributions regarding an application to the German Mittelstand are scant. In particular, a framework for multinational sales management with patterns for foreign subsidiaries is missing for both academia and management. Thus, the findings of this research study contribute to existing MNC knowledge and provide ideas and guidance for managerial practice.\ud
A review of the literature identifies MNC typologies (Bartlett & Beamish, 2014; Bartlett & Ghoshal, 1988), subsidiary role models (Bartlett & Beamish, 2014; Bartlett & Ghoshal, 1986), and the corresponding MNC factors. This serves as a starting point from which a conceptual framework is derived accordingly. Thereafter, a plausibility check with industry experts verifies and ensures the suitability of the identified MNC factors to the characteristics of the German Mittelstand. Then, an in-depth case study consisting of documentary, semi-structured interviews, and focus group interviews, applies the conceptual framework to the selected case of the German Mittelstand.\ud
The described research design operationalizes and modifies the selected MNC models in such a way that they suit the identified Mittelstand characteristics. This facilitates an application of the framework for multinational sales management consisting of the selected and operationalized MNC models for the MNC typology and the foreign subsidiaries.\ud
The main contribution of this research study is the framework for multinational sales management, which fills the gaps identified in existing knowledge. In particular, this research study contributes existing to knowledge by: (1 and 2) operationalizing the models for MNC typology and subsidiary roles for the German Mittelstand, (3) providing the key MNC factors for the German Mittelstand, and (4) elaborating the patterns for multinational sales management to improve the subsidiary competences and to increase the market importance of their local market with respect to their subsidiary role