Market-seeking MNEs in an emerging market

How parent-subsidiary links shape overseas success

Research output: Contribution to journalArticle

181 Citations (Scopus)

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 2003

Fingerprint

Environmental impact
Industry
Emerging markets
Multinational enterprises
Subsidiaries
Responsiveness
Resource commitment
Threat
Environmental effects
Interference
Subsidiary performance
Information flow
Resource dependence
China
Dynamic capabilities

Keywords

  • Emergent market
  • Multi national enterprise
  • Parent subsidiary links

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)

Cite this

Market-seeking MNEs in an emerging market : How parent-subsidiary links shape overseas success. / Luo, Yadong.

In: Journal of International Business Studies, Vol. 34, No. 3, 05.2003, p. 290-309.

Research output: Contribution to journalArticle

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