The Impact of Local Networks on Subsidiary Performance- The Moderating Effects of Host Country Institutional Voids

• Main Authors: Shiang Lei Teh, 鄭湘寧
• Other Authors: Yu-Ching Chiao
• Format: Others
• Language: zh-TW
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/h246f3

碩士 === 國立中興大學 === 企業管理學系所 === 107 === In this era of globalization, many companies choose to develop abroad, even establish an oversea subsidiary, to seek for better opportunities. However, they meet with different local conditions in different host countries, including cultural and environment. Therefore, these subsidiaries are encouraged to set up their own local relations network. In the past studies, although the concept of network resources is used to explain this type of partnership in local area, there is still less research about impact of institutional environment on the expansion of multinational companies in overseas subsidiaries. This study is intended to explore the relationship between range and strength of a subsidiary’s local network, and the performance of the subsidiary. Meanwhile, the operating of overseas subsidiaries often affected by the local institutional environment. So this study also includes the local institutional voids as a moderating variable. In theoretical part, we start with the view of network resources based and extend to the institutional voids caused by the incomplete institutional system in some countries. At the same time, we combine some relevant studies and the original database of the “Investigation on Foreign Investment in Manufacturing Industry” (2006) as the source of our data. After screening based on our study aim, 274 multinational companies that established their subsidiaries in China and Southeast Asia has been chosen for analyzing by hierarchical regression model. The results of this study show that when the local network range is wider and the strength is stronger, the performance of the subsidiaries will be improved. However, the exist of institutional voids will weaken the positive relationship between local network and subsidiary performance. Thus it can be seen that the development of subsidiaries can be improved by having local network resources, especially when the connection is wider and stronger. Besides, this study uses institutional voids as moderating variables, also helps to understand the importance of local conditions on subsidiaries performance. This study also supplements some results which were lacking in the past study, and also provides some reference for the industry.