Abstract
Entrepreneurial management and transformational leadership are central to the capabilities theory of the Multinational Corporation (MNC). This research explores the micro-foundations of capability development in MNCs by applying a transformational learning lens to study the development of senior subsidiary managers in a specific learning context. The research was carried out in a global software firm, with unique access to the senior leadership team of the regional headquarters with responsibility for Europe, the Middle East and Asia. Managers developed transformational capability-based projects as part of a corporate-sponsored university delivered entrepreneurial leadership programme. Preliminary findings have indicated that the learning process had a transformative impact on the cognitive engagement of subsidiary managers and their approaches to orchestrating assets within the MNC.