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Can multinational subsidiary managers develop creative strategies at the subsidiary level? To answer this question, we suggest that tensions between the headquarters and subsidiary perspectives demand a greater focus on the micro-foundations of strategy development in multinational subsidiaries. At a time when subsidiaries are coming under increasing pressure to meet the conflicting demands of innovation and integration in complex MNCs, this research contributes by uncovering the drivers of strategy creativity in subsidiaries and the mediating effect of an entrepreneurial subsidiary CEO. This study focuses on the attributes of the most senior manager in the subsidiary, the subsidiary CEO, and highlights how the entrepreneurial self-efficacy of these managers impacts the propensity for subsidiaries to be creative in their strategic approach.