scholarly journals Can Parents Be Attributed to Their Subsidiary Performance? A Multi-Level Analysis for Performance Determinants of Multinational Enterprises in Pakistan

2020 ◽  
Vol 6 (2) ◽  
pp. 34
Author(s):  
Nayab Zahra ◽  
Danish Ahmed Siddiqui
Keyword(s):  
Capital Investment ◽  
Multinational Enterprises ◽  
Hierarchical Linear Model ◽  
Subsidiary Performance ◽  
International Firms ◽  
Governance Indicators ◽  
Multi Level ◽  
Governance Institutions ◽  
Performance Determinants ◽  
Level Analysis

International firms are highly sensitive to the performance of their subsidiaries and want to understand the factors behind their monetary success. Thus, numerous strategies are employed by these International firms to explore subsidiaries’ performance determinants; usually, these include subsidiary level attributes, ignoring the parent’s impact along with its country. To address this gap we construct a multi-level research that focuses the subsidiary, parent attributes along with countries’ Governance Indicators while predicting the determinants of subsidiary performance in Pakistan.We use two different levels i.e. parent & subsidiary level; multi-level analysis approach with HLM (Hierarchical Linear Model) in this research paper. Governance indicators of both parents and subsidiaries were taken explanatory factors along with Market growth, size, Performance, R & D, capital structure as well as asset management policies of parent. Subsidiary level factors included parents’ ownership, size, equity, and capital investment. 26 multinational companies listed on Pakistan Stock Exchange were included. Data was taken from the year 2012 to 2018. Selected companies cover around ten sectors of Pakistan Stock Exchange.The study revealed that on both levels; parents and subsidiaries, Governance institutions are more influencing factors rather than companies’ own attributes. We recommend that before investing in a country, international businesses should take into account Governance institutions (by World Bank); more than their own attributes.Originality/value - This study contributes to the existing approaches to determining subsidiary performance through adding Governance institutions and parent level attributes. Especially it explores the determinants of subsidiary performance in a developing country; Pakistan in the Asia continent.

Determinants of international subsidiaries’ performances

2019 ◽  
Vol 15 (4) ◽  
pp. 746-766 ◽  
Author(s):  
Fang-Yi Lo ◽  
Ricky Tan
Keyword(s):  
Multinational Enterprises ◽  
Hierarchical Linear Model ◽  
Global Market ◽  
Investment Fund ◽  
Subsidiary Performance ◽  
Content Type ◽  
Level Data ◽  
Multi Level ◽  
Economic Journal ◽  
Level Analysis

Purpose One important strategy Multinational Enterprises (MNEs) employ to compete in the global market is to engage in foreign investment, but firms must know how they can perform better in the host country market. International subsidiaries’ performances play a chief role for MNEs’ globalization strategy. The purpose of this paper is to construct multi-level research with parent-level data at the higher level and subsidiary-level data at the lower level. Design/methodology/approach This study helps capture the rapid growing trend in emerging markets and uses a sample of Taiwanese enterprises and their subsidiaries in China. The data come from the Taiwan Economic Journal database. Precisely, the authors obtain 711 Taiwanese MNEs and 4,458 of their subsidiaries in China. Findings This study finds among the parent company’s attributes that firm size, firm total performance, depth of internationalization and foreign shareholding have significant impacts on subsidiary performance, while within the subsidiary’s attributes, subsidiary size, subsidiary-owned capital and total investment fund significantly affect subsidiary performance. Originality/value In order to capture subsidiary performance, this study uses a multi-level analysis approach with the Hierarchical Linear Model statistic method to separate parent company attributes and subsidiary-owned attributes as two distinct levels. This method fills the gap in the literature by analyzing subsidiary performance and clarifying that foreign direct investment is a multi-level phenomenon that cannot be analyzed using a one-level analysis method.

Drivers of Performance of Franchisees: A Multi-level Analysis

2017 ◽  
pp. 107-122
Author(s):  
Dut Vo Van ◽  
Huong Tran Thu ◽  
Dang Nguyen Huu
Keyword(s):  
Principal Component Analysis ◽  
Agency Theory ◽  
Linear Model ◽  
Survey Data ◽  
Hierarchical Linear Model ◽  
Principal Component ◽  
Empirical Results ◽  
Multi Level ◽  
Distribution Of Power ◽  
Level Analysis

The aim of this study is to examine the drivers of performance of franchisee organizations. Adopting agency theory, we hypothesize that age, size and obligatory assortment decided by central franchisors, distribution of power from franchisors to franchisees and frequency of franchisor’s visits to franchisee are positively associated with the performance of franchisees. The survey data of 186 franchisees in four European countries are used to test the proposed hypotheses. Principal component analysis and a hierarchical linear model are applied in this study. Empirical results reveal that whether the proposed hypotheses are statistically supported depend correspondingly on how franchisees’ performance is measured. The paper provides some implications for franchisee literature.

Determinants of foreign-owned subsidiary performance in emerging economies

2017 ◽  
Vol 40 (6) ◽  
pp. 626-647 ◽  
Author(s):  
Sven Dahms
Keyword(s):  
Multinational Enterprises ◽  
Resource Constraints ◽  
Emerging Market ◽  
Emerging Economy ◽  
Cross Sectional ◽  
Subsidiary Performance ◽  
Content Type ◽  
Performance Dimensions ◽  
Performance Determinants ◽  
Practical Implications

PurposeThe purpose of this study is to expand our understanding of performance determinants in foreign-owned subsidiaries (FOSs) located in an emerging economy. Design/methodology/approachA survey has been conducted of all known FOSs in Taiwan. FindingsThe results show that intra-organisational relationships and subsidiary competences are positively associated with various performance dimensions. Being located in a global city, as well as geographically distant from the home country, seem to have the opposite impact. The moderating factors of subsidiary age and authority are partially relevant. Research limitations/implicationsThis study is based on a cross-sectional sample of FOSs in Taiwan. Practical implicationsThe study shows that in an emerging market context, being strongly linked with the rest of the multinational enterprises might still be more conducive to subsidiary performance than venturing out. This is an important consideration, given the constant resource constraints for managers. Practical implicationsThis study highlights important factors that ought to be taken into consideration by policymakers to attract suitable foreign direct investment. Originality/valueThis study provides a comprehensive test of major performance determinants for FOSs located in an emerging economy.

Perceived coach interpersonal style and basic psychological needs as antecedents of athlete-perceived coaching competency and satisfaction with the coach: A multi-level analysis.

2020 ◽  
Vol 9 (1) ◽  
pp. 16-28
Author(s):  
Juan J. Pulido ◽  
Tomás García-Calvo ◽  
Francisco M. Leo ◽  
António J. Figueiredo ◽  
Hugo Sarmento ◽  
...  
Keyword(s):  
Psychological Needs ◽  
Basic Psychological Needs ◽  
Interpersonal Style ◽  
Multi Level ◽  
Coaching Competency ◽  
Level Analysis
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