Market Orientation, Embeddedness and the Autonomy and Performance of Multinational Subsidiaries in an Emerging Economy

Xiaoying Li (), Xiaming Liu and Howard Thomas
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Xiaoying Li: Brunel University
Xiaming Liu: Birkbeck College
Howard Thomas: Singapore Management University

Management International Review, 2013, vol. 53, issue 6, No 5, 869-897

Abstract: Abstract This paper develops a conceptual framework for market orientation, embeddedness, autonomy and performance of multinational subsidiaries in an emerging economy. We argue that internal and external embeddedness has different performance implications for export- and local market-oriented multinational subsidiaries. Our results, based on a sample of 233 multinational subsidiaries from China, indicate that while external embeddedness has a positive impact on specialized resources of both types of subsidiary, such resources only positively affect the performance of local market-oriented subsidiaries. By contrast, internal embeddedness has a negative impact on specialized resources of both types of subsidiary. Managerial and policy implications are discussed.

Keywords: Multinational subsidiaries; Market orientation; Embeddedness; Specialized resource (search for similar items in EconPapers)
Date: 2013
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DOI: 10.1007/s11575-013-0177-0

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