In recent decades the number of multinationals has multiplied, so has the number of subsidiaries. There exists a host of studies on the historical development of multinationals. Most of these studies focus on the mother companies. Less is known about the development of affiliates and their roles within multinationals. This book has examined the making of a subsidiary, the Falconbridge nickel refinery in Kristiansand in Norway. As Falconbridge's ownership lasted for more than seven decades, the Kristiansand refinery provides an excellent opportunity to analyse business development from angle of an affiliate. Three main aspects have been scrutinized:

1. Subsidiary autonomy and corporate control, 1929–2000.

2. The development of the subsidiary's knowledge resources and innovative capabilities.

3. Falconbridge's adaptation to – and interaction with – Norwegian society and business system.

Subsidiary Autonomy and Corporate Control

If we go back to the ideal types of affiliates described in Chapter 1, the Kristiansand refinery has no doubt been close to Birkinshaws description of the independent subsidiary which operates ‘within certain HQ-defined parameters but basically free to develop the business’, as it sees fit.1 Seven decades is of course a long time. The content of these ‘HQ-defined parameters’ has changed as have markets, communication technology and the political economies of both the home and host economies. All the same, it seems appropriate to review how the Kristiansand subsidiary gained and maintained such a role and how the autonomy was exploited.