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The intersubsidiary competition in an MNE: evidence from the Greater China region
Author(s) -
Fong CherMin,
Ho HuaLun,
Weng LiangChieh,
Yang KaiPeng
Publication year - 2007
Publication title -
canadian journal of administrative sciences / revue canadienne des sciences de l'administration
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.347
H-Index - 48
eISSN - 1936-4490
pISSN - 0825-0383
DOI - 10.1002/cjas.2
Subject(s) - subsidiary , competition (biology) , survival of the fittest , value (mathematics) , resource (disambiguation) , business , china , industrial organization , differential (mechanical device) , differential effects , multinational corporation , biology , ecology , finance , political science , engineering , law , computer network , evolutionary biology , machine learning , endocrinology , computer science , aerospace engineering
We examine subsidiary survival from an intersubsidiary competition perspective. Drawing from 87 Taiwanese subsidiaries of MNEs we examine the influences of strategic importance of a subsidiary, resource asymmetry, and characteristics of value activities on the survival rate of a subsidiary. Results show that these factors have differential effects on the survival rates of a firm's foreign subsidiaries. Specifically, strategic importance and gains in intangible resources enhance a subsidiary's survival rate, whereas local responsiveness, gains in physical resources, and similarity and mobility of value‐added activities decrease its survival rate. Copyright © 2007 ASAC. Published by John Wiley & Sons, Ltd.