What determines MNC subsidiary performance? Evidence from China

Xiaowen Tian and John W. Slocum

Journal of World Business, 2014, vol. 49, issue 3, 421-430

Abstract: The paper challenges the view that MNC dictates a subsidiary's business strategy and operations in accordance with the integration-responsiveness (IR) framework. The paper integrates the IR framework with contingency theory to argue that a subsidiary needs discretion to craft its own effective business strategy in light of the environmental exigencies facing the subsidiary in the host country. It may do so at variance with the MNC's strategy. Evidence from China supports that subsidiary managers should take strategic initiatives in response to specific host country environment.

Keywords: Multinational corporation; Subsidiary; International strategy; Business strategy; China (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

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DOI: 10.1016/j.jwb.2013.08.002

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