Determinants of foreign-owned subsidiary performance in emerging economies

Sven Dahms

Management Research Review, 2017, vol. 40, issue 6, 626-647

Abstract: Purpose - The purpose of this study is to expand our understanding of performance determinants in foreign-owned subsidiaries (FOSs) located in an emerging economy. Design/methodology/approach - A survey has been conducted of all known FOSs in Taiwan. Findings - The results show that intra-organisational relationships and subsidiary competences are positively associated with various performance dimensions. Being located in a global city, as well as geographically distant from the home country, seem to have the opposite impact. The moderating factors of subsidiary age and authority are partially relevant. Research limitations/implications - This study is based on a cross-sectional sample of FOSs in Taiwan. Practical implications - The study shows that in an emerging market context, being strongly linked with the rest of the multinational enterprises might still be more conducive to subsidiary performance than venturing out. This is an important consideration, given the constant resource constraints for managers. Practical implications - This study highlights important factors that ought to be taken into consideration by policymakers to attract suitable foreign direct investment. Originality/value - This study provides a comprehensive test of major performance determinants for FOSs located in an emerging economy.

Keywords: Performance; Multinational enterprises; Foreign-owned subsidiaries; Network relationships; Subsidiary development (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:mrrpps:mrr-03-2016-0057

DOI: 10.1108/MRR-03-2016-0057

Access Statistics for this article

Management Research Review is currently edited by Dr Jay Janney and Prof Lerong He

More articles in Management Research Review from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().