Local Density and Foreign Subsidiary Performance

Within-country product diversification and foreign subsidiary performance

Received: 1 March 2005 Revised: 22 November 2007 Accepted: 11 December 2007 Online publication date: 27 March 2008 Abstract We examine the product diversification of a multinational firm within each of its host-country markets. Based on a sample of 12,992 foreign subsidiaries of Japanese multinational firms, we find that higher levels of within-country product diversity led to higher subsidiary...

Expatriate Knowledge Transfer, Subsidiary Absorptive Capacity, and Subsidiary Performance

In this study, we theoretically identify three dimensions of expatriate competenciesability, motivation, and opportunity seeking—for knowledge transfer. Integrating the ability-motivation-opportunity framework and the absorptive capacity perspective, we propose that expatriate competencies in knowledge transfer influence a subsidiary's performance through the knowledge received by the subsidiar...

Foreign Capital and Local Firms: The Effect of Foreign Ownership and Management on Corporate Performance

Despite the political sensitivity of foreign capital, existing work on the effect of foreign capital at the firm level is slim. This paper examines the effect of foreign equity ownership and management on firm performance using a panel of Korean firms for the period of 1993-2007 when foreign capital inflows increased dramatically. Empirical results show that foreign equity ownership positively ...

Navigating Local Environments with Global Strategies: A Contingency Model of Multinational Subsidiary Performance

Multinational corporations (MNCs) often pursue global strategies that emphasize efficiency, flexibility, and learning, but globally developed strategies often clash with the environmental idiosyncrasies of MNC country subsidiary markets in which the strategy is actually implemented. Extant research pays little attention to the contingent efficacy of such global strategies from the perspective o...

Subsidiary Decision Making Autonomy: Competences, Integration and Local Responsiveness