The impact of increases in subsidiary autonomy and network relationships on performance |
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Authors: | Jens Gammelgaard Frank McDonald Andreas Stephan Heinz Tüselmann Christoph Dörrenbächer |
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Institution: | 1. Copenhagen Business School, Department of International Economics and Management, Porcelænshaven 24 2, 2000 Frederiksberg, Denmark;2. Bradford University School of Management, Emm Lane, Bradford BD9 4JL, United Kingdom;3. Jönköping International Business School, Box 1026, 551 11 Jönköping, Sweden;4. Manchester Metropolitan University, Aytoun Street, Manchester M1 3GH, United Kingdom;5. Berlin School of Economics and Law, Badensche Strasse 50/51, D-10825 Berlin, Germany;1. Institute of Geographic Sciences and Nature Resources Research, Chinese Academy of Sciences, Beijing 100101, China;2. Xinjiang Institute of Ecology and Geography, Chinese Academy of Sciences, Urumqi 830011, China;1. Department of Business Studies, Uppsala University, Sweden;2. Public University of Navarre, Spain;1. University of Groningen, Groningen, Netherlands;2. Copenhagen Business School, Copenhagen, Denmark;1. School of Management & Marketing, Waikato Management School, University of Waikato, Private Bag 3105, Waikato Mail Centre, Hamilton 3240, New Zealand;2. Aalto University School of Business, P.O. Box 21210, FI-00076 Aalto, Finland;1. University of Groningen, Faculty of Economics and Business, PO Box 800, 9700 AV Groningen, The Netherlands;2. Can Tho University, School of Economics and Business Administration, Campus II, 3/2 street, Ninh Kieu District, Can Tho City, Viet Nam;3. University of Bremen, Hochschulring 4, 28359 Bremen, Germany;4. Institute for Economic Research (IWH), Department of Structural Change, Kleine Märkerstraße 8, D-06108 Halle (Saale), Germany |
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Abstract: | This paper uses network approaches to subsidiary theory to investigate the performance impacts of interactions among the factors of autonomy, intra-organizational network relationships, and inter-organizational network relationships. The paper offers an analysis of both direct and indirect interactions among these factors. This study develops and extends existing research that uses network-based approaches in studies of subsidiary performance by considering the roles of autonomy and network relationships. In addition, the study examines changes in terms of increases in the interactions between the main factors rather than the levels of these factors. The examination of the interactions between increases in autonomy and networks and the subsequent impact of this change on performance contributes to a better understanding of subsidiary evolution. The results, which are based on data gathered from a survey of 350 foreign-owned subsidiaries in the UK, Germany, and Denmark, reveal complex interactions between increases in autonomy and network relationships, and the subsequent impact of these changes on performance. The results also highlight the central role of inter-organizational network relationships in the interaction between the factors, which produce significant and positive effects. |
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