Network effect and subsidiary autonomy in multinational corporations: An investigation of Taiwanese subsidiaries

Yu-Ching Chiao and Kung-Pao Ying

International Business Review, 2013, vol. 22, issue 4, 652-662

Abstract: Considering the lack of empirical evidence on the subsidiary autonomy of firms from Asian developing countries, which are usually smaller in size and have limited international experience, this study investigates the antecedents of subsidiary autonomy from a network perspective. We assess the range and the strength of both internal network (i.e., technological network) and external network (i.e., supplier's and distributor's networks) on subsidiary autonomy. Examining a sample of 1473 manufacturers extracted from a Taiwanese government-maintained database, we find that (1) a firm will grant less autonomy to a subsidiary with more internal network range and stronger internal network strength, and (2) a firm will grant more autonomy to a subsidiary with more external network range and stronger external network strength.

Keywords: External network; Internal network; Network range; Network strength; Subsidiary autonomy (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:iburev:v:22:y:2013:i:4:p:652-662

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DOI: 10.1016/j.ibusrev.2012.10.001

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