How do emerging multinational enterprises release subsidiary initiatives located in advanced economies?
MetadataShow full item record
We revisit the relationship between headquarters and subsidiaries under the context of emerging multinational enterprises (EMNEs) and develop a new model for releasing the subsidiary initiative, a significant form of corporate entrepreneurship activities hosted in advanced economies. Drawing upon institutional theory and corporate entrepreneurship theory, we argue that mutual trust between headquarters and subsidiaries serves as a mediating mechanism linking formal institutional distance and subsidiary initiatives. Meanwhile, we propose that communication effectiveness between headquarter and subsidiary plays as a moderator upon such relationships. Communication between the headquarters and the subsidiary positively moderates the relationship from formal institutional distance to trust. A sample including 232 EMNEs with headquarters in China and subsidiaries in advanced economies largely support our model on subsidiary initiative. Our model provides a solution to the global integration-local responsiveness paradox
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 ...
Institutional Distance and Headquarters-Subsidiary Relationship Quality: The Moderating Role of Institutionalization of Headquarters’ Practices in SubsidiariesLi, Forest; Jiang, Fuming (2016)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 ...
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 ...