Headquarters–subsidiary interaction during the introduction of a value product in India

In India, it has become imperative for multinational corporations (MNCs) to succeed in the value segment. Based on a longitudinal case study of Volvo Bus and understanding the introduction of a value product as a subsidiary initiative, we take an internal perspective highlighting the interaction between the headquarters and the local subsidiary. We find that recurring resistance of the corporate immune system—as a political intervention or lack of resources and support—is a major hindrance for the introduction of a value product; this results in the MNC distancing itself from the value product opportunity over time.