Institutional Distance and Headquarters-Subsidiary Relationship Quality: The Moderating Role of Institutionalization of Headquarters’ Practices in Subsidiaries
MetadataShow full item record
Through the lens of the institutional theory, we developed and empirically tested a contingency theoretical framework that examines the effects of formal and informal institutional distances on the quality of the headquarters–subsidiary relationship, and how such effects are contextualized by internal institutionalization of headquarters’ practices in subsidiaries of Chinese multinational enterprises (MNEs). Data were collected from both the headquarters of 297 Chinese MNEs and their respective subsidiaries. The results show that regulative and cultural distances are positively associated with the quality of the headquarters–subsidiary relationship, and that these positive relationships are stronger when subsidiaries institutionalize headquarters’ practices to a higher degree. Theoretical and practical implications are highlighted in the paper.
Showing items related by title, author, creator and subject.
Li, J.; Jiang, Fuming; Travaglione, Tony (2015)Through the lens of the social exchange theory, we developed and empirically tested a theoretical framework that contextualizes the effects of two levels of headquarters-subsidiary exchange on quality of headquarters-subsidiary ...
Exploring the configuration of strategy, structure and culture – the case of multinational subsidiaries in MalaysiaMohamad, Wardah (2010)The study of organizational strategy, structure and culture has been an area of interest for strategic management research. While there is abundant empirical research on strategic management in the West, little research ...
Determinants of quality of headquarters-subsidiary relationship: A study of Chinese multinational enterprisesLi, Jizhong (2014)Based on the institutional, social exchange, and upper echelons theories, this thesis develops a theoretical framework and examines the factors affecting the quality of headquarters-subsidiary relationship of Chinese ...