Performance Effects of Subsidiary Developments in Collaboration, and Decision Making Power

Jens Gammelgaard, Frank McDonald, Andreas Stephan, Heinz Tüselmann, Christoph Dörrenbächer

    Publikation: Working paperForskning

    194 Downloads (Pure)


    The paper investigates the consequences of interactions between autonomy, intra and inter-organizational networks for the performance of subsidiaries. Furthermore, the paper analyzes the impact of changes in autonomy and network relationships rather than investigating levels. This introduces the concept of adjustment of subsidiary strategies to changes in the international and host country business environment.Based on a survey of 350 foreign owned subsidiaries located in the UK, Germany and Denmark, we find evidence that increases in the inter-organizational network relationships of subsidiaries lead to increased subsidiary performance. Further, increased subsidiary autonomy positively affects subsidiary inter-organizational network relationships, and to some degree negatively affects intra-organizational network relationships. Finally, overlapping effects between inter- and intra-organizational network relationships are found.
    UdgiverDepartment of International Economics and Management, Copenhagen Business School
    Antal sider17
    StatusUdgivet - 2010
    NavnCIBEM Working Paper Series


    • Subsidiaries
    • Multinational companies
    • Autonomy
    • Network relationships
    • Performance
    • Partial least squares