The intersubsidiary competition in an MNE: evidence from the Greater China region | Zendy

Fong CherMin | Zendy; Ho HuaLun | Zendy; Weng LiangChieh | Zendy; Yang KaiPeng | Zendy

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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.

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