Performance of Chinese foreign subsidiaries: the role of national distance, organizational learning and overseas Chinese networks

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jie Yu ◽  
Changjun Yi ◽  
Jian Huang ◽  
Huiyun Shen
Keyword(s):  
High Performance ◽  
Qualitative Comparative Analysis ◽  
Secondary Data ◽  
Foreign Subsidiary ◽  
Foreign Subsidiaries ◽  
Subsidiary Performance ◽  
Content Type ◽  
Factors Affecting ◽  
Antecedent Conditions ◽  
Chinese Mncs

PurposeThe current literature lacks discussion on the effects of synergy among multiple factors at different levels on foreign subsidiary performance. The purpose of this paper is to explore the configuration of factors affecting foreign subsidiary performance.Design/methodology/approachThe methodology adopted in this paper is the fuzzy-set qualitative comparative analysis (fsQCA). The data are obtained from 125 foreign subsidiaries of Chinese MNCs through questionnaire surveys and secondary data.FindingsThe research results reveal that five configurations of antecedent conditions predict high foreign subsidiary performance, and the other two configurations predict not-high performance.Research limitations/implicationsThis paper’s main limitation is its only focus on foreign subsidiaries of Chinese MNCs, which means that the findings should be generalized with precaution. The most valuable implication is to identify the configurations that lead to high and not-high foreign subsidiary performance.Practical implicationsThis paper addresses the question of how interdependent factors at the national and corporate level are beneficial to foreign subsidiaries’ performance.Originality/valueThis study makes the following contributions to current theories: It provides (1) new insights for understanding the complex causality between antecedent conditions and foreign subsidiary performance and (2) a practical reference for the multinational operations of foreign subsidiaries.

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.

Factors affecting transaction costs in megaprojects: a qualitative comparative analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dedong Wang ◽  
Hui Li ◽  
Yongqiang Lu
Keyword(s):  
Comparative Analysis ◽  
Transaction Costs ◽  
Qualitative Comparative Analysis ◽  
Asset Specificity ◽  
Necessary Condition ◽  
Content Type ◽  
Factors Affecting ◽  
Relational Contract ◽  
Factors Influencing ◽  
Project Costs

PurposeThe purpose of this study is to examine the factors influencing the transaction costs (TCs) in megaprojects to provide a basis for controlling project costs.Design/methodology/approachThis study selects six factors influencing the TCs in megaprojects from the perspective of TC theory and relational contract theory (RCT) through literature review. On the basis of crisp-set qualitative comparative analysis (QCA), this study tests combined factors influencing the TCs and the interaction between them.FindingsResults show that in megaprojects, TCs are affected by combination factors. The combination of asset specificity, uncertainty, transaction frequency and trust and the combination of asset specificity, reputation and trust will control TCs in certain situations. In the configuration leading to high project TCs, the combination of environmental and behavioral uncertainties is a necessary condition.Originality/valueThis paper fills up the research gap in the field of megaproject TCs, and researchers can focus on this field in the future.

scholarly journals Environmental Conditions, Entrepreneur Alertness and Social Capital on Performance

2016 ◽  
Vol 9 (8) ◽  
pp. 1 ◽  
Author(s):  
Yu-Li Lin ◽  
Hsiu-Wen Liu ◽  
Fengzeng Xu ◽  
Hao Wang
Keyword(s):  
Social Capital ◽  
Environmental Conditions ◽  
Business Performance ◽  
High Performance ◽  
Methodological Approach ◽  
Qualitative Comparative Analysis ◽  
Causal Factors ◽  
Entrepreneurial Alertness ◽  
Antecedent Conditions ◽  
Causal Complexity

<p>This study addresses the important question of causal complexity as it relates to the influence of social capital, entrepreneurial alertness and the entrepreneurship environment on business performance. Using a relatively new methodological approach, namely fuzzy-set qualitative comparative analysis (fsQCA), this paper aims to investigate alternative complex antecedent conditions (or causal recipes) that lead to high performance. Based on a survey of 194 entrepreneurs in China, this paper shows that business performance is likely to be the result of a combination of causal factors. This study finds that: (1) four different configurations of social capital, entrepreneurial alertness and entrepreneurship environment were “equifinal” causes of high performance, and (2) market openness should fit other environmental conditions to achieve high performance. This study contributes to research on entrepreneurship by applying the ideas of “equifinality” and “fit” to entrepreneurial characteristics and environment theory.</p>

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.

The impact of within-country and within-firm factors on Japanese foreign subsidiary performance during economic crisis

2017 ◽  
Vol 9 (3) ◽  
pp. 190-205 ◽  
Author(s):  
Matheus Baldo Cordeiro ◽  
Mario Henrique Ogasavara ◽  
Gilmar Masiero
Keyword(s):  
Economic Crisis ◽  
Fixed Effects ◽  
Multinational Firms ◽  
Negative Impact ◽  
Foreign Subsidiaries ◽  
Productivity Measurement ◽  
Subsidiary Performance ◽  
Content Type ◽  
Subsidiary Management ◽  
The Impact

Purpose The purpose of this paper is to analyze the relevant aspects that influence foreign subsidiary’s performance and remain how they retain competitiveness in international markets during economic crisis. To investigate this effect, this research analyzes the behavior of Japanese subsidiaries located in European countries during the pre- and post-crisis periods that started in the USA in 2008 and spread all over the world. Design/methodology/approach This is a quantitative study with an analysis based on longitudinal data of foreign subsidiaries of Japanese multinational firms during the period 2006-2013. It applies a multiple linear regression with panel data using fixed effects models. Findings The findings show that within-firm factors related to local experiential knowledge, market entry through joint ventures with partners from the same nationality, and subsidiary management with a team of expatriates all have a positive impact on subsidiary performance during times of economic crisis. Moreover, within-country factors involving macroeconomic aspects related to inflation rate and population income indicators show a negative impact on performance. Finally, the results confirm that subsidiary performance is higher in the pre-crisis period, showing the importance of considering economic crisis aspects in longitudinal studies. Practical implications The result has implications for managers of multinational firms to understand which factors most impact the success of their foreign subsidiaries during times of economic crisis. In this way, managers can, with greater confidence, decide to reach the most important performance indicator in subsidiary management. Originality/value The majority of studies on economic crisis is based on an economic perspective and mostly investigates Asian and Argentinean crises. When considering a firm-level perspective, most research studies conducted on a subsidiary level are cross-sectional or use survival as a measure of performance. This paper applies a longitudinal study using subsidiary-level data and analyzes performance by sales and productivity measurement. In addition, it investigates whether or not within-country and within-firm factors impacted subsidiary performance during the 2008 economic crisis.

Does context really matter? The influence of deficient legal services on the intensity of political ties in the regulatory and legal arenas

2020 ◽  
Vol 28 (3) ◽  
pp. 277-305 ◽  
Author(s):  
George O. White III ◽  
Thomas A. Hemphill ◽  
Tazeeb Rajwani ◽  
Jean J. Boddewyn
Keyword(s):  
Service Sector ◽  
The Philippines ◽  
Foreign Subsidiary ◽  
Legal Services ◽  
Legal Service ◽  
Foreign Subsidiaries ◽  
Institutional Voids ◽  
Content Type ◽  
Political Ties ◽  
Managerial Perceptions

Purpose The purpose of this study is to apply the institution-based view and resource dependence theory in arguing that perceived deficiencies in a legal service sector where a foreign subsidiary operates will influence the intensity of its political ties with actors in both the regulatory and legal arenas. The authors further theorized that these relationships will vary across governance environments. Design/methodology/approach The research context for this study was multinational enterprises (MNE) wholly owned foreign subsidiaries and international joint ventures (IJVs) operating in the Philippines and Thailand. Data for most variables in this study came from primary survey data collected in 2018 from senior managers of MNE WOSs and IJVs operating in the Philippines and Thailand. Findings The authors’ analysis of 352 foreign subsidiaries operating in the Philippines and Thailand show that, in a flawed democracy, perceived deficient legal services enhance the intensity of foreign subsidiary political ties with government actors in both the regulatory and legal arena. However, in a hybrid regime, perceived deficient legal services enhance only the intensity of foreign subsidiary political ties with government actors in the regulatory arena. The authors’ findings also suggest that the relationship between perceived deficiencies in legal service sector and the intensity of political ties is stronger for foreign subsidiaries that operate in heavily regulated industries across both a flawed democracy and hybrid regime. Conversely, the authors do not find the market orientation of these foreign subsidiaries to play a role in this process. Research limitations/implications The authors’ study was unable to control for whether managerial perceptions of deficient legal services were well informed at the local or federal level. This issue raises the question of will the presence of an in-house legal department influence managerial perceptions with regard to deficiencies within a legal service sector? Based on these limitations, the authors suggest that future research can further extend political ties research by using a fine-grained analysis in investigating the antecedents of managerial perceptions of legal services within different legal jurisdictions. Originality/value The political ties literature has largely argued that political ties are more prevalent in environmental contexts comprising institutional voids as MNEs attempt to mitigate volatility associated with the lack of developed institutional infrastructure (e.g. Blumentritt & Nigh, 2002; Bucheli et al., 2018). However, the concept of institutional voids is very broad and still rather abstract in nature. Hence, scholars have yet to fully understand what types of institutional voids may drive MNE foreign subsidiary political tie intensity in varying governance contextsThe authors’ study attempts to contribute to this important line of research by investigating how one type of institutional void, namely, perceived deficiencies in the legal service sector, can influence the intensity of political ties in varying governance environments.

Cultural configurations and entrepreneurial realisation

2019 ◽  
Vol 25 (1) ◽  
pp. 112-128 ◽  
Author(s):  
Pedro Torres ◽  
Mário Augusto
Keyword(s):  
Organizational Behavior ◽  
Early Stage ◽  
Qualitative Comparative Analysis ◽  
Entrepreneurial Intentions ◽  
Entrepreneurial Activity ◽  
Future Research ◽  
Policy Makers ◽  
Content Type ◽  
Antecedent Conditions ◽  
Entrepreneurial Behaviour

Purpose The purpose of this paper is to better understand the connection between culture and entrepreneurship in proposing and testing complex configurations of culturally endorsed implicit leadership theories (CLTs) and cultural practices that lead to entrepreneurial behaviour by studying entrepreneurial intentions (EI) and early-stage entrepreneurial activity (TEA) separately. Design/methodology/approach Using data from Globe Leadership and Organizational Behavior Effectiveness (GLOBE) and Global Entrepreneurship Monitor (GEM) studies, a sample of 44 countries, and a fuzzy-set qualitative comparative analysis, several models for EI and TEA were developed. Findings The main findings provide a way of distinguishing between complex antecedent conditions that are required for each stage of the entrepreneurial realisation. The results empirically show that there is no ideal context – the path to stimulate entrepreneurship that works best for one country does not necessarily works the same for other countries. There are multiple paths to achieve the desired outcome. Research limitations/implications The data from the GLOBE study were not completely up to date, the effect of which was minimised by considering data from GEM that respects temporal ordering. Nevertheless, data from GEM suggest that there is a degree of stability in the data over time. Future research could replicate this study with a larger selection of countries and with new data, collected in a different way. Additionally, the inclusion of CLTs proposed in this study opens new opportunities for future research, by providing a new angle to look at the entrepreneurial realisation process. Practical implications This study advances research into the association of culture and entrepreneurship, and develops testable models using a configurational approach, thus confirming the suitability of asymmetric configuration analysis for entrepreneurial research. The results expand an understanding of the entrepreneurial process by showcasing the different complex antecedent conditions for EI and TEA. Depending on a country’s cultural profile, policy-makers should invest in the dimensions that enable their society to align with the model that best suits their own culture. The obtained models offer a framework for evaluating new interventions that aim to develop entrepreneurial behaviour in a specific country. Originality/value Different configurations showcase that there are alternative paths to achieving high levels of EI and TEA. The differences among the possible configurations for each stage of the entrepreneurial realisation are uncovered. Country profiles are identified, quantified, and then compared providing guidance for policy-makers.

Tourism destination competitiveness and tourism performance

2019 ◽  
Vol 29 (5) ◽  
pp. 592-621 ◽  
Author(s):  
Mohd Hafiz Hanafiah ◽  
Muhammad Izzat Zulkifly
Keyword(s):  
Structural Equation ◽  
Secondary Data ◽  
Partial Least Square ◽  
Least Square ◽  
Tourism Destination ◽  
Actual Performance ◽  
Content Type ◽  
Factors Affecting ◽  
Travel And Tourism ◽  
Destination Competitiveness

Purpose This study aims to examine the relationships between tourism destination competitiveness (TDC) determinants and tourism performance. This study specifically assessed the soundness of the TDC attributes and evaluated their ability in explaining tourism performance. Design/methodology/approach The Dwyer and Kim’s (2003) destination competitiveness integrated model (IM) was used. Secondary data of 115 nations available from the Travel and Tourism Competitiveness Index (TTCI) and other international reports were also used. The hypothesised relationships were tested via partial least square-structural equation modelling (PLS-SEM). Findings This study confirms that the core resources, complementary condition, globalisation and tourism price significantly explain tourism performance. Results have shown differences in the competitiveness level and actual performance among nations, highlighting specific limitations of the current TDC model and TTCI report reliability. Research limitations/implications Future study could segment the sample base on destinations characteristic and then analyse it based on smaller sub-samples of similar destinations. Moreover, drivers of destination performance in developed and less develop destinations are quite diverse. Practical implications The incorrect competitiveness ranking evaluation will affect inward investment decisions. This study framework enables policymakers to arrive at more informed decisions than merely relying on the original competitiveness rankings. Originality/value The widespread acknowledgment of the importance of competitiveness for a tourism destination's success suggests that there is a crucial need for sound benchmarking of countries’ competitive capabilities. The proposed competitiveness determinants aid the policymakers in identifying the best competitiveness and tourism performance predictors, as well as how to identify crucial factors affecting the rankings.

Pritchett Controls: ten years into employee ownership

2018 ◽  
Vol 14 (3) ◽  
pp. 305-322
Author(s):  
Richard C. Hoffman ◽  
Wayne H. Decker ◽  
Frank Shipper
Keyword(s):  
Human Resources ◽  
Organizational Development ◽  
High Performance ◽  
Secondary Data ◽  
Employee Ownership ◽  
Strategic Human Resource Management ◽  
The Body ◽  
Primary Data ◽  
Content Type ◽  
In The Beginning

Synopsis This case illustrates the rationale for adopting employee ownership, and difficulties in implementing employee empowerment beyond investment. In the beginning it focuses on why Jerry Pritchett, one of the co-founders of Pritchett Controls, decided to convert it to an employee-owned company. In the body of the case, it details the efforts of the company to operate under its new ownership structure in an increasingly competitive environment. Although Pritchett established employee owners, only selected High Performance Work Systems (HPWS) practices have been implemented. The issue that reader must grapple with is whether other HPWS practices should be adopted or not. Research methodology Primary data were collected by interviewing eight managers including the current and former CEO at two of the firm’s three locations. Secondary data were used to supplement industry and competitive information. Relevant courses and levels Human resources courses, especially those that focus on strategic human resource management, organizational development, and how high performance organizations can be built, would be most appropriate for this case. Theoretical bases The primary theoretical foundations for this submission are shared entrepreneurship and HPWS. Knowledge of leadership, employee ownership, human resources, corporate governance, organizational culture and strategy would also be helpful in analyzing this case.

Effect of the factors affecting high-performance p-aramid fibre dyeing and their optimization

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kashif Iqbal ◽  
Farooq Azam ◽  
Faiza Safdar ◽  
Munir Ashraf ◽  
Abdur Rehman ◽  
...  
Keyword(s):  
High Performance ◽  
Uv Light ◽  
Aramid Fibre ◽  
Cationic Dyes ◽  
Fastness Properties ◽  
Content Type ◽  
Factors Affecting ◽  
Colour Fastness ◽  
Swelling Agent ◽  
Aramid Fabric

Purpose This study aims to evaluate the dyeing of the p-aramid fibre with cationic dyes and investigate the effect of dyeing in the protection of the fibre from ultraviolet (UV) light. Design/methodology/approach P-aramid fabric has been dyed with cationic dyes using benzyl alcohol as swelling agent to promote the penetration of dye molecules into the fibre. The fabrics were evaluated against colour strength (K/S) value and colour fastness properties after dyed with cationic dyes using full factorial design. This design was used to study the effect of factors that affect the response variables as well as to study the interactions among the factors on response variable. The bursting strength, scanning electron microscopy analysis and X-ray diffraction analysis of undyed and dyed p-aramid fabric were performed before and after exposure to UV light to investigate the changes in mechanical behaviour. Findings The results show that the p-aramid fabric dyed with cationic dyes has good K/S values and good fastness properties. The exposure of undyed p-aramid fabric to UV light causes serious loss in strength over short duration i.e. 40 h. Dyeing of p-aramid fabric enhances the resistance to UV light which reduces the loss in strength. Originality/value Most of the work is patented and no one has done the process optimization for the industry, so this study offers promising outcomes concerning the dyeing of p-aramid fabric with enhanced shade depth and good colour fastness characteristics.

Sign in / Sign up

Export Citation Format

Share Document