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 language | English (US) |
|---|---|
| Pages (from-to) | 290-309 |
| Number of pages | 20 |
| Journal | Journal of International Business Studies |
| Volume | 34 |
| Issue number | 3 |
| DOIs | |
| State | Published - May 2003 |
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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 journal › Article
}
TY - JOUR
T1 - Market-seeking MNEs in an emerging market
T2 - How parent-subsidiary links shape overseas success
AU - Luo, Yadong
PY - 2003/5
Y1 - 2003/5
N2 - 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.
AB - 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.
KW - Emergent market
KW - Multi national enterprise
KW - Parent subsidiary links
UR - http://www.scopus.com/inward/record.url?scp=2142795076&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=2142795076&partnerID=8YFLogxK
U2 - 10.1057/palgrave.jibs.8400027
DO - 10.1057/palgrave.jibs.8400027
M3 - Article
VL - 34
SP - 290
EP - 309
JO - Journal of International Business Studies
JF - Journal of International Business Studies
SN - 0047-2506
IS - 3
ER -