Abstract
This study examines various determinants of local responsiveness as perceived by MNE subsidiary managers in a dynamic environment. It proposes and validates three levels of factors affecting responsiveness, including environmental, structural, and organizational. Analysis of data containing 168 MNE subsidiaries in the People's Republic of China suggests that environmental complexity and business culture peculiarity heighten local responsiveness. Structural factors such as competition intensity, demand heterogeneity, and component localization elevate local responsiveness. A subsidiary's local market orientation and the strength of its established network with the business community and governmental agencies also propel such responsiveness. Finally, there is a stronger relationship between environmental and industrial factors and responsiveness for firms seeking local market expansion than for those pursuing export growth.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 451-477 |
| Number of pages | 27 |
| Journal | Journal of Management |
| Volume | 27 |
| Issue number | 4 |
| DOIs | |
| State | Published - Jul 2001 |
| Externally published | Yes |
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ASJC Scopus subject areas
- Strategy and Management
- Finance
Cite this
Determinants of local responsiveness : Perspectives from foreign subsidiaries in an emerging market. / Luo, Yadong.
In: Journal of Management, Vol. 27, No. 4, 07.2001, p. 451-477.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Determinants of local responsiveness
T2 - Perspectives from foreign subsidiaries in an emerging market
AU - Luo, Yadong
PY - 2001/7
Y1 - 2001/7
N2 - This study examines various determinants of local responsiveness as perceived by MNE subsidiary managers in a dynamic environment. It proposes and validates three levels of factors affecting responsiveness, including environmental, structural, and organizational. Analysis of data containing 168 MNE subsidiaries in the People's Republic of China suggests that environmental complexity and business culture peculiarity heighten local responsiveness. Structural factors such as competition intensity, demand heterogeneity, and component localization elevate local responsiveness. A subsidiary's local market orientation and the strength of its established network with the business community and governmental agencies also propel such responsiveness. Finally, there is a stronger relationship between environmental and industrial factors and responsiveness for firms seeking local market expansion than for those pursuing export growth.
AB - This study examines various determinants of local responsiveness as perceived by MNE subsidiary managers in a dynamic environment. It proposes and validates three levels of factors affecting responsiveness, including environmental, structural, and organizational. Analysis of data containing 168 MNE subsidiaries in the People's Republic of China suggests that environmental complexity and business culture peculiarity heighten local responsiveness. Structural factors such as competition intensity, demand heterogeneity, and component localization elevate local responsiveness. A subsidiary's local market orientation and the strength of its established network with the business community and governmental agencies also propel such responsiveness. Finally, there is a stronger relationship between environmental and industrial factors and responsiveness for firms seeking local market expansion than for those pursuing export growth.
UR - http://www.scopus.com/inward/record.url?scp=0042907518&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=0042907518&partnerID=8YFLogxK
U2 - 10.1016/S0149-2063(01)00103-9
DO - 10.1016/S0149-2063(01)00103-9
M3 - Article
VL - 27
SP - 451
EP - 477
JO - Journal of Management
JF - Journal of Management
SN - 0149-2063
IS - 4
ER -