Most studies of multinational enterprises focus on the parent company, while the subsidiaries tend to be neglected. Most often firms are analysed from an owner or a top management perspective. When the viewpoint is changed, and the development is analysed from the perspective of the affiliate, other aspects of business development come to light. As multinational companies – and their subsidiaries – steadily increase in number this may enhance our understanding of international capitalism. By the year 2000 multinational companies had established more than 690,000 affiliates scattered around the world.

Just as parent companies differ, so do subsidiaries. Some are just instruments of their parent companies, set up to exploit their parents’ ownership advantages. Some affiliates belong to centralized organizations and have little room for independent action, while others are quite autonomous and have developed considerable innovative capabilities.

This book analyses the making of a subsidiary in the nickel industry – of Falconbridge's nickel refinery in Kristiansand in Southern Norway. The refinery traces its origins back to 1910 when the small and independent company Kristiansand Nikkelraffineringsverk (KNR) started production. The history as a subsidiary started in 1929 when the Canadian company Falconbridge acquired the Kristiansand plant, its patent rights and most of its personnel. The refinery was from the beginning an essential part of Falconbridge. Canadian ownership proved a success, but as will be demonstrated below, the refinery remained a mostly autonomous entity within the Falconbridge organization for a very long time.