Host country uncertainty, intra-MNC production shifts, and subsidiary performance

2012 ◽  
Vol 33 (11) ◽  
pp. 1331-1340 ◽  
Author(s):  
Seung-Hyun Lee ◽  
Sangcheol Song
Keyword(s):  
Host Country ◽  
Subsidiary Performance

Impact of host country institutional context on subsidiary performance

2015 ◽  
Vol 53 (1) ◽  
pp. 198-220 ◽  
Author(s):  
Chinmay Pattnaik ◽  
SoonKyoo Choe ◽  
Deeksha Singh
Keyword(s):  
Labor Market ◽  
Host Country ◽  
Institutional Quality ◽  
New Institutional Economics ◽  
Institutional Distance ◽  
Host Countries ◽  
Subsidiary Performance ◽  
Content Type ◽  
The Impact

Purpose – The purpose of this paper is to examine the impact of quality of market supporting institutions (institutional quality) in host country and the similarities and differences of institutional quality between the home and host country (institutional distance) on subsidiary performance. Design/methodology/approach – Based on the conceptualization of new institutional economics, the authors divide quality of host country institutions into factor markets; product, capital, labor market and sociopolitical dimensions. The authors examine the impact of the quality these institutional dimensions in host countries and their difference between home and host country on the performance of 318 subsidiaries of 146 Korean listed manufacturing firms operating in 28 host countries from 2001 to 2006. Findings – The empirical results based on 1,129 observations show that institutional distance explains a significant variance in the subsidiary performance. In particular, the difference in quality of institutions in product, capital and labor market has negative impact on subsidiary performance. However, except for quality of regulation in labor market, host country institutional qualities do not significantly explain the variation in subsidiary performance. Originality/value – The evidence suggests that host country institutions matter substantially when considered with their relative similarity and difference with home country institutions. The impact of individual dimensions of institutions varies on subsidiary performance.

Rapid institutional changes and subsidiary performance: the impact of home and host country learning

2021 ◽  
Vol 2021 (1) ◽  
pp. 13493
Author(s):  
Lucio Fuentelsaz ◽  
Elisabet Garrido Martinez ◽  
Minerva González
Keyword(s):  
Host Country ◽  
Institutional Changes ◽  
Subsidiary Performance ◽  
The Impact

Subnational differences and entry mode performance: Multinationals in east and west China

2017 ◽  
Vol 26 (4) ◽  
pp. 426-444
Author(s):  
Anran Li ◽  
Brent Burmester ◽  
Peter Zámborský
Keyword(s):  
Host Country ◽  
Joint Ventures ◽  
Entry Mode ◽  
Performance Gap ◽  
Subsidiary Performance ◽  
West China ◽  
Entry Mode Choice ◽  
Entry Strategies ◽  
Country Analysis ◽  
Wholly Owned Subsidiaries

AbstractWe compare the influence of entry mode choice on subsidiary performance in two developmentally-differentiated regions of a developing host country. Analysis of 113 subsidiaries located in two provinces of China indicates that wholly owned subsidiaries outperform joint ventures in the developed region, whereas joint ventures outperform wholly owned subsidiaries in the less developed region. However, the smaller performance gap between wholly owned subsidiaries and joint ventures in the developed region indicates that the magnitude of influence of entry mode choices on performance varies across subnational regions. Firms must therefore be more discriminating in formulating entry strategies to regionally heterogeneous countries.

scholarly journals The Building of Country Manager's Competence and Its Use to Orchestra Subsidiary's Resources: Empirical Study of Indonesian Subsidiaries in Nigeria

2019 ◽  
Vol 21 (1) ◽  
pp. 37
Author(s):  
So Yohanes Jimmy ◽  
Firmanzah Firmanzah ◽  
Tengku Ezni Balqiah ◽  
Albert Widjaja
Keyword(s):  
Empirical Study ◽  
Host Country ◽  
Absorptive Capacity ◽  
Structural Equation ◽  
Equation Model ◽  
Business Unit ◽  
Subsidiary Performance ◽  
Business Units ◽  
Operational Capabilities ◽  
Resource Orchestration

This study employs resource orchestration model to investigate the influence of country manager’s competence on subsidiary performance in host country. Structural equation model with multisteps approach is operated using Lisrel to analyze 41 data from Indonesian business unit operating in Nigeria. This study found that country managers uses subsidiary absorptive capacity, which is formed by the combination of headquarter and local partner resources, as the dominant source of learning to develop their competence overtime. This competence does not directly influence subsidiary performance, but it is notably used to accumulate the critical assets for their subordinate business units. These assets then become valuable inputs for business units to develop or modify their operational capabilities, which directly influence the performance. One contribution of this study is providing more detail explanation of how headquarter resources invested abroad are transformed into subsidiary performance.

Subsidiary Networks and Foreign Subsidiary Performance: A Coopetition Perspective

2019 ◽  
Vol 15 (1) ◽  
pp. 111-143 ◽  
Author(s):  
Yang Liu ◽  
Jie Jiao ◽  
Jun Xia
Keyword(s):  
Host Country ◽  
Economic Advantage ◽  
Foreign Subsidiary ◽  
Intangible Asset ◽  
Foreign Subsidiaries ◽  
Subsidiary Performance ◽  
And Performance ◽  
The Relationship ◽  
Positive Effect ◽  
Subsidiary Network

ABSTRACTFrom a coopetition perspective, we differentiate between a multinational enterprise's product-similar subsidiary network and product-different subsidiary network in a host country. We argue that the product-similar network will have a curvilinear (inverted U-shaped) effect on foreign subsidiary performance, whereas the product-different network will produce a monotonic (positive) effect. Moreover, we introduce host-country economic advantage and intangible resource of the subsidiary as moderators into the relationship between subsidiary network and performance. Using longitudinal panel data of foreign subsidiaries, we find evidence that when host-country economic advantage is large, and the level of intangible asset intensity is high, the inverted U-shaped effect of product-similar subsidiary network is less pronounced. Moreover, host-country economic advantage and intangible asset intensity both enhance the positive effect of product-different subsidiary network. However, the moderating effect of intangible asset intensity is opposite to our prediction.

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