Parent-subsidiary linkage: How resource commitment and resource similarity influence firm performance

Chung-Jen Chen (), Ya-Hui Lin (), Shan-Huei Wang () and Ruey-Shan Guo ()
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Chung-Jen Chen: National Taiwan University
Ya-Hui Lin: Ming Chuan University
Shan-Huei Wang: Tunghai University
Ruey-Shan Guo: National Taiwan University

Asia Pacific Journal of Management, 2022, vol. 39, issue 2, No 9, 615-658

Abstract: Abstract Drawing on the resource-based view, this study examines how parent-subsidiary resource linkages in terms of resource commitment and resource similarity affect the performance of the parent firm. By using the data from 199 Taiwanese firms investing in China, the results of this study show that resource commitment has an inverted U-shaped relationship with the parent firm performance, whereas the relationship between resource similarity and the parent firm performance is U-shaped. In addition, this study also finds that organizational slack and parent involvement moderate these relationships. This study provides important theoretical and managerial implications for international business management.

Keywords: Foreign investment; Parent-subsidiary linkage; Resource commitment; Resource similarity (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1007/s10490-020-09741-x

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