Factory performance and decision-making authority between headquarters, expatriates, and local employees in Japanese MNCs in Southeast Asia

Kiyohiro Oki ()
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Kiyohiro Oki: The University of Tokyo

Asian Business & Management, 2020, vol. 19, issue 1, No 6, 86-117

Abstract: Abstract This study aims to clarify the relationship between foreign factory performance and the decision-making authority for manufacturing activities between headquarters, expatriates, and local employees. To investigate these relationships, we conducted logistic regression analysis based on a questionnaire survey of 246 Japanese manufacturing subsidiaries in Southeast Asia and multiple case studies. We found (1) a negative relationship between factory performance and the level of the headquarters’ authority, (2) a positive relationship between factory performance and the level of expatriates’ authority, and that (3) subsidiaries’ operating years and export ratio moderate the relationship between factory performance and expatriates’ authority.

Keywords: Factory performance; Decision-making authority allocation; Headquarter–subsidiary relationships; Expatriate management; Japanese MNCs (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1057/s41291-018-00054-y

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