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Performance Evaluation of Foreign Subsidiaries: A Review of the Literature and a Contingency Framework
Author(s) -
Schmid Stefan,
Kretschmer Katharina
Publication year - 2010
Publication title -
international journal of management reviews
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 4.475
H-Index - 107
eISSN - 1468-2370
pISSN - 1460-8545
DOI - 10.1111/j.1468-2370.2009.00259.x
Subject(s) - contingency , subsidiary , dimension (graph theory) , contingency theory , business , process management , knowledge management , computer science , multinational corporation , epistemology , mathematics , philosophy , finance , pure mathematics
During recent years, the literature on the international dimension of business has grown. In particular, the literature on headquarters–subsidiary relationships has expanded. This paper aims to review the literature on performance evaluation and elaborate an integrative contingency framework. This contingency framework helps to clarify the concept of performance evaluation and to classify existing contributions. Furthermore, the framework serves as a tool to identify potential influencing factors on performance evaluation at corporate and at subsidiary level. By reviewing existing studies, the paper analyses the impact of these influencing factors on performance evaluation and reveals mostly contradictory results or no significant impact at all. Based on the findings, more research outside the classical tradition of contingency approaches is suggested.