Subsidiary networks are defined as webs of specific inter-firm and intra-firm relationships that a foreign subsidiary of an MNC has to host-country actors and units within the MNC, respectively. Network theory offers a pertinent view on critical resources and has shown that the most important resource is the web of specific relationships in which a unit (subsidiary) is embedded. Economic actions and the product of such actions are influenced by the unit’s dyadic relationships and all connected relationships, as are all social activities, which is why utilizing an embeddedness approach helps avoid the atomization of an actor when studying its behavior. Embeddedness is defined as a subsidiary’s interdependence with its network partners and is often specified by distinguishing a subsidiary’s external embeddedness in the host-country environment and its internal embeddedness within the global MNE environment.