Subsidiary Networks and Foreign Subsidiary Performance: A Coopetition Perspective

2019 ◽  
Vol 15 (1) ◽  
pp. 111-143 ◽  
Author(s):  
Yang Liu ◽  
Jie Jiao ◽  
Jun Xia
Keyword(s):  
Host Country ◽  
Economic Advantage ◽  
Foreign Subsidiary ◽  
Intangible Asset ◽  
Foreign Subsidiaries ◽  
Subsidiary Performance ◽  
And Performance ◽  
The Relationship ◽  
Positive Effect ◽  
Subsidiary Network

ABSTRACTFrom a coopetition perspective, we differentiate between a multinational enterprise's product-similar subsidiary network and product-different subsidiary network in a host country. We argue that the product-similar network will have a curvilinear (inverted U-shaped) effect on foreign subsidiary performance, whereas the product-different network will produce a monotonic (positive) effect. Moreover, we introduce host-country economic advantage and intangible resource of the subsidiary as moderators into the relationship between subsidiary network and performance. Using longitudinal panel data of foreign subsidiaries, we find evidence that when host-country economic advantage is large, and the level of intangible asset intensity is high, the inverted U-shaped effect of product-similar subsidiary network is less pronounced. Moreover, host-country economic advantage and intangible asset intensity both enhance the positive effect of product-different subsidiary network. However, the moderating effect of intangible asset intensity is opposite to our prediction.

Effects of two staffing decisions on the performance of MNC subsidiaries

2014 ◽  
Vol 2 (1) ◽  
pp. 85-101 ◽  
Author(s):  
Naoki Ando ◽  
Yongsun Paik
Keyword(s):  
Multinational Corporations ◽  
Foreign Subsidiary ◽  
Foreign Subsidiaries ◽  
Data Set ◽  
Subsidiary Performance ◽  
Content Type ◽  
Host Country Nationals ◽  
Negative Effect ◽  
Curvilinear Relationships ◽  
The Relationship

Purpose – The purpose of this paper is to examine the relationship between foreign subsidiary staffing and subsidiary performance by focussing on two staffing practices: first, the ratio of parent country nationals (PCNs) to foreign subsidiary employees and second, the number of PCNs assigned to the foreign subsidiary. Design/methodology/approach – Hypotheses predicting curvilinear relationships between the assignment of PCNs and subsidiary performance are tested using a panel data set consisting of 4,858 foreign subsidiaries of Japanese multinational corporations (MNCs). Findings – The results demonstrate that the two staffing practices have different effects on subsidiary performance. The ratio of PCNs to foreign subsidiary employees has an inverted U-shaped relationship with subsidiary performance, while the number of PCNs assigned to the subsidiary has a linear and negative effect on subsidiary performance. Research limitations/implications – The results of this study are subject to limitations. First, the sample used in this study consists solely of the foreign subsidiaries of Japanese firms. This research design limits the generalizability of the findings of this study. Second, other decisions related to subsidiary staffing such as the ratio of PCNs in the subsidiary's top management team need to be examined to advance understandings of the relationship between subsidiary staffing and subsidiary performance. Practical implications – MNCs need to identify the appropriate number of PCNs at which they can achieve the optimal trade-off with the PCN ratio to enhance the competitiveness and the performance of a foreign subsidiary. In doing so, they need to take into consideration that an increase in the number of PCNs has an immediate negative effect on the workplace morale of host country nationals. Originality/value – This study incorporates two staffing practices into its analyses and shows that they have different implications for subsidiary performance. The results suggest that focussing on one staffing practice alone limits understanding of the complex relationship between foreign subsidiary staffing and subsidiary performance.

Determinants of the level of foreign subsidiaries’ localization of Korean MNCs and performance in China

2017 ◽  
Vol 21 (1) ◽  
pp. 2-21
Author(s):  
Byoung-Goo Kim ◽  
Gyu-Bae Kim
Keyword(s):  
Survey Data ◽  
Empirical Analysis ◽  
Corporate Culture ◽  
Business Strategy ◽  
Local Network ◽  
Foreign Subsidiary ◽  
Foreign Subsidiaries ◽  
Content Type ◽  
Network Embeddedness ◽  
The Relationship

Purpose The purpose of this paper is to empirically analyze what effects the headquarters’ (HQ) business strategy and corporate culture, the local network embeddedness of the foreign subsidiary, and HQ-subsidiary communication have on the staff localization of foreign subsidiaries. The authors carry out empirical analysis on how localization of foreign subsidiaries ultimately affects the performance of foreign subsidiaries. Design/methodology/approach This study is an empirical analysis on the determinants of staff localization and the relationship between staff localization and corporate performance. In this study, the five hypotheses were proposed and tested using survey data. The authors randomly selected a total of 800 companies as subjects and conducted a survey. The final 222 survey data including HQs and subsidiaries were used for empirical analysis. The statistical analyses such as reliability test, factor analysis and regression were used. Findings This study shows that there was a higher level of staff localization by the foreign subsidiary when the investment goal was market-oriented investment, the Korean foreign subsidiary had stronger local network embeddedness and there was better HQ-subsidiary communication. In addition, the relationship between localization and subsidiary performance shows an inverted U-shape. Such results will give various implications to companies. Originality/value The research that takes a multilayered consideration on factors of the HQ, subsidiaries, and the HQ-subsidiary relationship is rare. To overcome such limitations, this study carried out a survey in order to find more in-depth decision factors. Specifically, this study analyzed the effects of three large aspects of investment goals and corporate culture from the aspect of the HQ, local network embeddedness from the aspect of foreign subsidiaries, and the level of HQ-subsidiary communication from the aspect of HQ-subsidiary relations, and how they affect staff localization.

scholarly journals The Determinants of the Effectiveness of Internal Audits with Management Support as the Moderating Variable

2019 ◽  
Author(s):  
hendra poltak
Keyword(s):  
Analysis Tool ◽  
Management Support ◽  
Questionnaire Data ◽  
Organizational Goals ◽  
Internal Auditors ◽  
External Auditors ◽  
Pls Analysis ◽  
And Performance ◽  
The Relationship ◽  
Positive Effect

Weak financial accountability reflects the lack of effectiveness of internal audits. The purpose of this research was to test and provide the evidence of the determinants of the effectiveness of internal audits at the Ministry of Marine Affairs and Fisheries (KKP). The samples of this research were 31 internal auditors and 31 KKP employees. This research was explanatory research. To test the hypotheses, the data of the research questionnaire data were analysed using Partial Least Squares (PLS) analysis tool. The results show that the relationship between internal auditors and external auditors, organizational independence, and auditee perceptions positively influences the effectiveness of internal audits. However, audit professionalism does not have a positive effect towards the effectiveness of internal audits and the management support cannot be a moderating variable. This finding can open the horizons of interested parties, especially KKP leaders, to consider policies that can improve the effectiveness of internal audits to improve organizational goals and performance.

Corporate Strategy and Subsidiary Performance: The Effect of Product and Geographic Diversification

2019 ◽  
Vol 16 (5) ◽  
pp. 996-1029 ◽  
Author(s):  
Jie Jiao ◽  
Yang Liu ◽  
Rui Wu ◽  
Jun Xia
Keyword(s):  
Transition Economies ◽  
Multinational Enterprises ◽  
Corporate Strategy ◽  
Joint Effect ◽  
Product Diversification ◽  
European Countries ◽  
Foreign Subsidiaries ◽  
Geographic Diversification ◽  
Subsidiary Performance ◽  
The Relationship

ABSTRACTIn this study, we argue that foreign subsidiaries may benefit from the corporate strategies of multinational enterprises (MNEs) in different ways in terms of knowledge transfer and strategic flexibility. From this viewpoint, we explore the relationship between product diversification and financial performance of their subsidiaries under the condition of MNE geographic diversification. Using panel data on foreign subsidiaries in European countries from 2006 to 2011, we find a U-shaped relationship between product diversification and subsidiary performance and the joint effect of product and geographic diversification. Given the importance of transition economies in international business today, we conducted a subsample test contrasting the results based on the transitional (Central and Eastern European) versus Western European countries. The contrasting results provide important implications for other transition economies like China. We validate the relationship in several ways in our robustness tests.

Strategy, Choice of Performance Measures, and Performance

2006 ◽  
Vol 18 (1) ◽  
pp. 185-205 ◽  
Author(s):  
Wim A. Van der Stede ◽  
Chee W. Chow ◽  
Thomas W. Lin
Keyword(s):  
Performance Measurement ◽  
Performance Measures ◽  
Manufacturing Strategy ◽  
Measurement Systems ◽  
Nonfinancial Measures ◽  
Performance Measurement Systems ◽  
And Performance ◽  
The Relationship ◽  
Positive Effect ◽  
Extensive Performance

We examine the relationship between quality-based manufacturing strategy and the use of different types of performance measures, as well as their separate and joint effects on performance. A key part of our investigation is the distinction between financial and both objective and subjective nonfinancial measures. Our results support the view that performance measurement diversity benefits performance as we find that, regardless of strategy, firms with more extensive performance measurement systems—especially those that include objective and subjective nonfinancial measures—have higher performance. But our findings also partly support the view that the strategy-measurement “fit” affects performance. We find that firms that emphasize quality in manufacturing use more of both objective and subjective nonfinancial measures. However, there is only a positive effect on performance from pairing a qualitybased manufacturing strategy with extensive use of subjective measures, but not with objective nonfinancial measures.

Alliance Strategic and Organizational Form, Managerial and Market Engangement to Improve Performance

2020 ◽  
Vol 8 (1) ◽  
pp. 1-17
Author(s):  
Andi Oetari ◽  
Zainul Arifin
Keyword(s):  
Strategic Alliance ◽  
Organizational Form ◽  
Improve Performance ◽  
Managerial Strategy ◽  
And Performance ◽  
The Relationship ◽  
Positive Effect

The purpose of this study examines whether the strategic alliance affects the organizational form, managerial strategy, market engagement, and performance and how these variables interact in order to become a mutually beneficial partnership. The study took place in Indonesia, especially in Java, to the parties related to the strategic alliance between PT Transportasi Jakarta and bus operators in investment and management of Busway in DKI Jakarta. The study took place is in Indonesia especially Java Island and not only in DKI Jakarta. Findings in this study is have significant and positive effect on organizational form, in other hands, the strategic alliance has a non-signifncant effect to performance, managerial strategy, and market engangement. The novelty in this study is the market engagement variable examined by looking at the relationship between the strategic alliance and market engagement, managerial strategy and market engagement, and market engagement and performance.

Assessing the structural, mechanical and dispersible characteristics of flushable nonwovens

2019 ◽  
Vol 90 (5-6) ◽  
pp. 581-592
Author(s):  
Hande G Atasağun ◽  
Gajanan S Bhat
Keyword(s):  
Production Technology ◽  
Raw Materials ◽  
Wet Strength ◽  
Government Regulations ◽  
Production Methods ◽  
Legal Obligations ◽  
The World ◽  
And Performance ◽  
The Relationship ◽  
Positive Effect

Flushable wipes have become popular among consumers who worry about environmental problems the world confronts today. However, whether these wipes have a positive effect on environmental protection is contradictory because of the lack of government regulations and legal obligations. Starting from this point, in this study, we characterized commercially available flushable products, which were manufactured from various raw materials by different production methods, in order to understand the relationship between their structure and performance properties. The results showed that production technology had a significant effect on the structural, mechanical, and dispersible properties of nonwovens. The disintegration percentage of nonwovens was inversely related to their wet strength. The findings of this study will be helpful in the design of new flushable nonwovens for improved wet strength and dispersibility performance.

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