Subsidiary Performance Measurement Based on Parent Company and Subsidiary Characteristic

• Main Authors: RICKY IGNATIUS TAN, 陳永福
• Other Authors: LO, FANG-YI
• Format: Others
• Language: en_US
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/6d6z4w

碩士 === 逢甲大學 === 國際經營與貿易學系 === 106 === One important strategy for MNEs to compete in global market is to engage in FDI, however the firms must know how they perform in the host country market. Therefore, foreign subsidiary plays an important role for MNEs globalization strategy. In order to measure subsidiary performance, this study used multilevel analysis approach using Hierarchical Linear Model (HLM) statistic method by separating parent company attribute and subsidiary owned attribute as two distinct levels. This method provides insight to analyze subsidiary performance by clarifying that FDI is a multi level problem that cannot be analyzed using one level analysis method. This study used sample of Taiwanese enterprises and its subsidiaries counterpart in Mainland China. The data was extracted from Taiwan Economic Journal (TEJ) database. Precisely, 711 Taiwanese firms and 4458 subsidiaries in China were obtained. As for independent variable, we choose parent company export orientation, market growth, firm size, firm total performance (ROA), R&D investment, depth and breadth of internationalization and foreign holding for parent company attributes. Furthermore, invest location (area), ownership level, subsidiary size, capital and total investment amount were chosen as independent variable in subsidiary level. This study found that in the parent company attribute, firm size, firm total performance, depth of internationalization and foreign share holding hold significant roles toward subsidiary performance, while in the subsidiary attribute, subsidiary size, subsidiary owned capital and total investment fund significantly affecting subsidiary performance.