| Summary: | 碩士 === 義守大學 === 管理研究所碩士班 === 95 === The decision of the ownership strategy in foreign subsidiary is critical for the multinational company’s (MNC) competitive advantage and therefore the performance. The ownership strategy in foreign subsidiary is related closely with the control, coordination, and knowledge transformation between the headquarter and the subsidiary within the MNC. Furthermore, it also indicates the MNC’s resource input and resource commitment in the subsidiary. Traditionally, the ownership strategy decision is a rational process; the decision of the optimal ownership strategy is the product of analyzing the endowed resources and the outside opportunities in the headquarter and the subsidiary, respectively. However, from the institutional viewpoint, the embedded institutional characteristics, including the normative, cultural, and regulative dimensions, in the home country and the host country may help to reduce the uncertainty, and then signal the acceptable and supportable strategic choices for companies. Furthermore, the institutional distance between the home and the host country engaged by the MNC will also be influential in the MNC’s strategy decision, such as the ownership strategy in this study.
Using secondary data analysis, this research tries to investigate the possible role of institutional dimensions and the institutional distances, including economic, regulative, normative, and cultural, on the MNCs’ ownership strategy in Taiwan. Specifically, this research focuses on the possible influence from the institutional dimensions of the MNC’s home country. The results reveal that the home country’s economic and cultural institutional dimensions embedded by the MNC, and the institutional distance, respectively, have significant influence on its ownership strategy in Taiwan’s subsidiary. The institutional viewpoint will be complementary on the economic and resource-based viewpoint in discussing the MNC’s ownership strategy in subsidiary.
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