Peacebuilding by MNE subsidiaries: The role of intangible capital and local initiative

Abstract

This article discusses how intangible subsidiary capital in multinational enterprises (MNEs) influences peacebuilding activities by subsidiaries operating in conflict zones. Intangible subsidiary capital includes human, social, and organizational capital that resides in the foreign subsidiaries of MNEs. I argue that these forms of capital represent intangible assets that enable the subsidiary to contribute to peace in conflict zones. They do this by facilitating a process of peace-initiative creation and execution that unfolds over time. This process is similar to entrepreneurial initative that is widely observed in subsidiaries of MNEs. The process differs from that of subsidiary initiatives due to its humanitarian purpose, as documented in the literature. The approach developed in this article provides a new way to analyze MNE subsidiary peacebuilding while giving the subsidiary initiative literature a new purpose in a conflict-ridden world. Implications for MNE management include the need to both understand and develop the different types of intangible subsidiary capital in subsidiaries operating in conflict zones so that local opportunities for peacebuilding can be identified and pursued successfully.