The effects of an MNC subsidiary's integration and local responsiveness on its performance: an empirical study of Taiwanese enterprises' subsidiaries

Cher-Hung Tseng and Yeun-Wen Chang

International Journal of Business Performance Management, 2005, vol. 7, issue 4, 409-425

Abstract: The continuing trend of industrial globalisation and the apparent attractiveness of foreign markets have prompted an increasing number of Taiwanese enterprises to accelerate their transition toward a fully international operation by establishing foreign subsidiaries. In analysing 53 foreign subsidiaries of Taiwanese enterprises, this study explores the effects of a subsidiary's integration and local responsiveness on its performance. The current analysis reveals that a subsidiary's integration with its parent company and its local responsiveness both have a positive influence on its performance. Furthermore, the industry's global integration has a positive moderating effect on the relationship between a subsidiary's integration and its performance. Meanwhile, the wholly owned subsidiary entry mode has a negative moderating effect on the relationship between a subsidiary's local responsiveness and its performance.

Keywords: subsidiary integration; subsidiary local responsiveness; subsidiary performance; multinational subsidiaries; multinational corporations; MNCs; Taiwan; competitive advantage; subsidiary strategy. (search for similar items in EconPapers)
Date: 2005
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