The study of how the MNE headquarters-subsidiary links affects the application of subsidiary external relationship

• Main Authors: Lu-Jui Chen, 陳律睿
• Other Authors: Chun-Chung Chen
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/90250818827345786608

博士 === 元智大學 === 管理研究所 === 96 === This study develops a theoretical model combined with MNEs’ headquarters macro view and subsidiary micro view to describe the transnational business. Doing business is not only a matter of selling or purchasing, it also means establishing and developing business relationships win important customers or intermediaries, and suppliers. In this paper, we focus specifically on the subsidiary role associated with the local business network in which the different actors embedded, and on the headquarters’ macro strategy concerning the network. This study also discriminates the relationships between supplier and customer. The theoretical is developed and tested with data from 118 subsidiaries in Taiwan. The results indicate that business embeddedness are determined by the extent to which the headquarters’ multidomestic orientation and resource gap. Also, we identify business embeddedness causes positive effect on expected market performance, and the subsidiary’s importance for MNE competence development can be predicted by expected market performance. The points for these results are recognized on both supplier and customer relationships. On the distinct results, hypotheses concerning the relationships between a subsidiary’s external technical embeddedness, expected market performance and the subsidiary’s importance for competence development are meant detailed by supplier and customer relationships separately. In supplier relationship, subsidiary technical embeddedness can be a strong predictor to the subsidiary’s importance for competence development. For the expected market performance, subsidiary technical embeddedness can be a positive prediction under the embeddedness with its customer. This study concludes with a discussion about the role that a subsidiary can play a bridgehead between internal and external units of an MNE and the distinct relationships that make refined implications for MNEs’ international strategy.