 Eect of operating multiple aliates on the performance of subsidiaries in the same host countryNo 2022-ACF-02, Working Papers from IESEG School of Management Abstract: Lile has been reported on the eect of aliates on their foreign subsidiary performance. In the context of multinational banks (MNBs), we empirically investigate how the establishment of multiple aliate forms aects the performance of their subsidiaries in the same host country. We also examine the factors inuencing and eective entry mode choices. Based on the transaction cost theory, we hypothesize that MNBs can benet foreign subsidiaries using entry modes based on cost minimization and value maximization. For the period 2005–2015, we test this hypothesis on a sample of 897 subsidiaries established by 98 MNBs across 147 countries. e results show that the simultaneous operation of multiple aliate forms positively inuences their foreign subsidiary’s performance. e transaction costs determine MNBs’ entry choices. MNBs can enhance their subsidiary’s performance using entry modes considering institutional and cultural contexts and achieving cost and value targets in the host country. is study has policy implications in that it calls for collaboration between host and home countries to develop eective supervision and resolution regimes for MNBs operating multiple aliate forms in host countries. Keywords: : multinational banks; transaction cost theory; entry mode choice; cultural and institutional proximity (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ies:wpaper:f202202 Access Statistics for this paper More papers in Working Papers from IESEG School of Management Contact information at EDIRC. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.