Market-seeking MNEs in an emerging market: How parent-subsidiary links shape overseas success

Research output: Contribution to journalArticle

200 Scopus citations

Abstract

This study extends research on parent-subsidiary links, applying new theoretical perspectives - those of resource dependence and dynamic capability - to the new empirical setting of an emerging market. We suggest that parent-subsidiary links help to mitigate emerging market threats by reducing external dependence, and help to capitalize on emerging market opportunities by enhancing local responsiveness. We identify four dimensions (resource commitment, information flow, local responsiveness and control flexibility) to parent-subsidiary links, and examine environmental effects in moderating the contribution of these dimensions. The analysis of 196 Multi National Enterprise (MNE) subsidiaries in China shows that a parent firm's control flexibility, resource commitment and local responsiveness exert a strong and positive influences on subsidiary performance. These influences are weaker when regulatory interference is higher, but stronger when industrial opportunity is richer.

Original languageEnglish (US)
Pages (from-to)290-309
Number of pages20
JournalJournal of International Business Studies
Volume34
Issue number3
DOIs
StatePublished - May 1 2003

Keywords

  • Emergent market
  • Multi national enterprise
  • Parent subsidiary links

ASJC Scopus subject areas

  • Business and International Management
  • Business, Management and Accounting(all)
  • Economics and Econometrics
  • Strategy and Management
  • Management of Technology and Innovation

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