The multinational subsidiary is a unique context for studying management processes relating to strategy but, to date, the literature in this area lacks a coherent approach. It is recognised that subsidiaries evolve over time and, through their own actions and initiatives, have the potential to modify the power structures of the multinational enterprise (MNE), but little is known about the role of the subsidiary manager in this process. In reviewing the empirical and theoretical research on subsidiary management, we highlight how the tensions between the headquarters' perspective and the subsidiary perspective have resulted in the application of inappropriate frameworks to the study of subsidiary managers. We address this issue by proposing an organising framework for subsidiary management research. By departing from the traditional theories of the firm and applying the middle manager view of strategy development, the organising framework developed represents an initial attempt to generate a specific subsidiary level theory.