Subsidiary autonomy and performance in Japanese multinationals in Europe |
| |
| Institution: | 1. Schulich School of Business, York University, 4700 Keele Street, Toronto, ON M3J 1P3 Canada;2. College of Business and Economics, University of Guelph, Guelph, Ontario, Canada N1G 2W1;3. School of Management, Fudan University, Shanghai, China;4. Antai College of Economics & Management, Shanghai Jiao Tong University, Shanghai, China |
| |
| Abstract: | Notwithstanding the growing body of research on headquarters–subsidiary relationships, the conditions under which subsidiary autonomy leads to enhanced subsidiary performance is still a subject of debate. This study adopts a contingency approach and investigates the effects of external uncertainties and intra-MNE coordination on the performance benefits of subsidiary autonomy. The empirical analysis is based upon cross-sectional data collected from 88 European subsidiaries of Japanese MNEs. Our findings show that subsidiary autonomy has a greater impact upon performance (a) under conditions of technological uncertainty; and (b) when expatriate involvement is high, as the subsidiary can reap the full benefits of entrepreneurial capabilities and enjoy resource interdependencies through interactions with the parent simultaneously. MNC executives should aim for an appropriate balance between subsidiary autonomy and these internal and external factors so that the subsidiaries achieve superior performance. |
| |
| Keywords: | Environmental uncertainty Europe Expatriate involvement Firm performance Japanese multinationals Subsidiary autonomy |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
