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

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

    Research output: Working paperResearch

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    Abstract

    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.
    Original languageEnglish
    Place of PublicationFrederiksberg
    PublisherDepartment of International Economics and Management, Copenhagen Business School
    Number of pages17
    Publication statusPublished - 2010
    SeriesCIBEM Working Paper Series

    Keywords

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

    Cite this

    Gammelgaard, J., McDonald, F., Stephan, A., Tüselmann, H., & Dörrenbächer, C. (2010). Performance Effects of Subsidiary Developments in Collaboration, and Decision Making Power. Department of International Economics and Management, Copenhagen Business School. CIBEM Working Paper Series