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Subsidiary autonomy and performance in Japanese multinationals in Europe
journal contribution
posted on 2023-06-08, 15:47 authored by Norifumi Kawai, Roger StrangeRoger StrangeNotwithstanding the growing body of research on headquarters–subsidiary relationships, the conditions under which subsidiary autonomy leads to enhanced subsidiary performance is still a subject of debate. This study adopts a contingency approach and investigates the effects of external uncertainties and intra-MNE coordination on the performance benefits of subsidiary autonomy. The empirical analysis is based upon cross-sectional data collected from 88 European subsidiaries of Japanese MNEs. Our findings show that subsidiary autonomy has a greater impact upon performance (a) under conditions of technological uncertainty; and (b) when expatriate involvement is high, as the subsidiary can reap the full benefits of entrepreneurial capabilities and enjoy resource interdependencies through interactions with the parent simultaneously. MNC executives should aim for an appropriate balance between subsidiary autonomy and these internal and external factors so that the subsidiaries achieve superior performance.
History
Publication status
- Published
File Version
- Published version
Journal
International Business ReviewISSN
0969-5931Publisher
ElsevierExternal DOI
Issue
3Volume
23Page range
504-515Department affiliated with
- Business and Management Publications
Full text available
- No
Peer reviewed?
- Yes
Legacy Posted Date
2013-09-18First Compliant Deposit (FCD) Date
2013-09-18Usage metrics
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