바로가기메뉴

본문 바로가기 주메뉴 바로가기

logo

ISSN : 1738-3110

논문 상세

이전 다음
선공개 논문 논문 투고

Vol.13 No.8
Citation Share

The Relationship between the Control Level of Foreign Subsidiaries and Performance in the Chinese Market

The Relationship between the Control Level of Foreign Subsidiaries and Performance in the Chinese Market

The Journal of Distribution Science(JDS) / The Journal of Distribution Science, (P)1738-3110; (E)2093-7717
2015, v.13 no.8, pp.15-25
https://doi.org/https://doi.org/10.15722/jds.13.8.201508.15
Kim, Byoung-Goo (Division of Global Business, Hanshin University)
Kim, Gyu-Bae (Dept. of Business Administration, Daejeon University)
Kim, Byoung-Goo, & Kim, Gyu-Bae. (2015). The Relationship between the Control Level of Foreign Subsidiaries and Performance in the Chinese Market. The Journal of Distribution Science(JDS), 13(8), 15-25, https://doi.org/https://doi.org/10.15722/jds.13.8.201508.15
  • 다운로드 수
  • 조회수
PDF 다운로드

Abstract

Purpose - There is a lack of research on how much corporate control is sufficient for effective subsidiary business-related decision making. To address this research gap, this study analyzes the impact of the level of control of a Korean corporation's headquarters on its overseas subsidiary performance. Research design, data, methodology - The study's sample comes from the Overseas Korean Business Directory of KOTRA. A multiple regression analysis empirically confirmed the relationship between the headquarters level of control over the subsidiaries and their performance. Results - The results show that the greater an organization's headquarters control over strategic issues, the greater the subsidiary's non-financial performance. However, quick decision-making through decentralization promotes the rapid selection of successful new products that can provide a competitive advantage. Conclusion - This study shows that the impact of control levels on subsidiary performance depends on the type of control involved. Specifically, while low levels of control over operational issues had a positive (+) influence on subsidiary non-financial performance, high control levels led to improved non-financial performance with regard to strategic issues among the subsidiaries.

keywords
Multinational Company, Headquarter, Foreign Subsidiary, Control Level, Subsidiary Performance, Chinese Market

참고문헌

1.

Adler, P. S., & Borys, B. (1996). Two types of bureaucracy: enabling vs. coercive. Administrative Science Quarterly, March, 61-89.

2.

Andersson, U., Forsgren, M., & Holm, U. (2002). The Strategic Impact of External Networks: Subsidiary Performance and Competence Development in the Multinational Corporation. Strategic Management Journal, 23, 979-996.

3.

Andersson, U., Forsgren, M., & Pedersen, T. (2001). Subsidiary Performance in Multinational Corporations: the Importance of Technology Embeddedness. International Business Review, 10(1), 3-23.

4.

Asakawa, K. (1996). External-Internal Linkages and Oversea Autonomy-Control Tension: The Management Dilema of the Japanese R&D in Europe. Transactions on Engineering Management, 43, 24-32.

5.

Baliga, B. R., & Jaeger, A. M. (1984). Multinational Corporations: Control Systems and Delegation Issues. Journal of International Business Studies, Fall, 25-40.

6.

Baum, J. R. (2000). A Longitudinal Study of the Causes of Technology Adoption and its Effect upon New Venture Growth. Frontiers of Entrepreneurship Research, 2, 1-12.

7.

Baum, J. R., & Wally, S. (2003). Strategic Decision Speed and Firm Performance. Strategic Management Journal, 24, 1107-1129.

8.

Beamish, P. W. (1985). The Characteristics of Joint Ventures in Developed and Developing Countries. Columbia Journal of World Business, 20(3), 13-19.

9.

Birkinshaw, J., & Morrison, A. (1995). Configurations of Strategy and Structure in Subsidiaries of Multinational Corporations. Journal of International Business Studies, 26, 729-754.

10.

Bourgeois L. J., & Eisenhardt K. (1988). Strategic Decision Processes in High Velocity Environments: Four Cases in the Microcomputer Industry. Management Science, 34, 816-835.

11.

Brooke, M. Z. (1984), Centralization and autonomy: A Study in Organization Behaviour. London and New York: Holt, Rinehart and Winston.

12.

Child, J. (1973). Strategies of Control and Organizational Behavior. Administrative Science Quarterly, March, 1-17.

13.

Cray, D. (1984). Control and Coordination in Multinational Corporations. Journal of International Business Studies, Fall, 85-98.

14.

Deal, T. E., & Kennedy, A. A. (1982), Corporate Cultures: The Rites and Rituals of Corporate Life. Addison-Wesley.

15.

Dess, G. G., & Robinson, R. B. (1984). Measuring Organizational Performance in the Absence of Objective Measures: The Case of the Privately-held Firm and Conglomerate Business Unit. Strategic Management Journal, 5, 265-273.

16.

Dhanaraj, C. M., Lyles, A., Steensma, H. K., & Tihanyi, L. (2004). Managing Tacit and Explicit Knowledge Transfer In IJVs: The Role of Relational Embeddedness and the Impact on Performance. Journal of International Business Studies, 35, 428-442.

17.

Doz, Y., Bartlett, C., & Prahalad, C. K. (1981). Global Competitive Pressures and Host Country Demands. California Management Review, 3, 63-74.

18.

Doz, Y., & Prahalad, C. K. (1981). Headquarters Influence and Strategic Control in MNCs. Sloan Management Review, 23, 15-29.

19.

Doz, Y., & Prahalad, C. K. (1984). Patterns of Strategic Control within Multinational Corporations. Journal of international business studies, 15, 55-72

20.

Edwards, R., Ahmad, A., & Moss, S. (2002). Subsidiary Autonomy: The Case of Multinational Subsidiaries in Malaysia. Journal of International Business Studies, 33(1), 183-191.

21.

Eisenhardt K. M. (1989). Making Fast Strategic Decisions in High-Velocity Environment. Academy of Management Journal, 27, 299-343.

22.

Forsgren, M., & Pedersen, T. (1998). Centres of Excellence in Multinational Companies: The Case of Denmark. In Birkinshaw, J. and Hood, N. (eds), Multinational corporate Evolution and Subsidiary Development (pp.141-161), Macmillan Press.

23.

Garnier, G. H. (1982). Context and Decision Making Autonomy in the Foreign Affiliates of U.S. Multinational Corporations. Academy of Management Journal, 25, 893-908.

24.

Garnier, G., Osborn, T. N., Galica, F., & Lecon, R. (1979). Autonomy of the Mexican Affiliates of U.S. Multinational Corporation. Columbia Jounal of World Business, spring, 78-90.

25.

Gates, S. R., & Egelhoff, W. G. (1986). Centralization in Headquarters? Subsidiary Relationships. Journal of International Business Studies, 17(2), 71-92.

26.

Geringer, J. M., & Hebert, L. (1989). Control and Performance of International Joint Venture. Journal of International Business Studies, Summer, 235-254.

27.

Geringer, J. M., & Woodcock, C. P. (1989). Ownership and Control of Canadian Joint Venture. Business Quarterly, Summer, 97-101.

28.

Ghoshal, S., & N. Nohria. (1989). Internal differentiation within multinational corporations. Strategic Management Journal, 10, 323-337

29.

Ghoshal, S., Korine, H., & Szulanski, G. (1994). Interunit Communication in Multinational Corporations. Management Science, 40, 96-110.

30.

Gupta, A. K. & Govindarajan, V. (1991). Knowledge Flows and the Structure of Control within Multinational Corporations. Academy of Management Review, 16(4), 768-792.

31.

Hatvany, M., & Pucik, V. (1981). An Integrated Management System: Lessons from the Japanese Experience. Academy of Management Review, July, 469-480.

32.

Hedlund, G. (1981). Autonomy of Subsidiaries and Formalization of Headquarters Subsidiary Relationships in Swedish MNCs. In L. Otterbeck (Ed.), The Management of Headquarters-subsidiary Relationships in Multinational Corporations (pp.25-78). New York: St Martin Press.

33.

Ho, Liang-Chun (2013). Relationship Between Stock Price Indices of Abu Dhabi, Jordan, and USA : Evidence from the Panel Threshold Regression Model. International Journal of Industrial Distribution & Business, 4(2), 13-19.

34.

Jarillo, J. C., & Martinez, J. I. (1990). Different Roles for Subsidiaries: The Case of Multinational Corporations in Spain. Strategic Management Journal, 11(7), 501-512.

35.

Jaussaud, J., & Schaaper, J. (2007). European and Japanese Multinational Companies in China: Organization and Control of Subsidiaries. Asian Business & Management, 6, 223-245.

36.

Johnston, S., & Menguc, B. (2007). Subsidiary size and the level of subsidiary autonomy in multinational corporations: a quadratic model investigation of Australian subsidiaries. Journal of International Business Studies, 38, 787-801.

37.

Jones G. K, Lanctot A., & Teegen H. J. (2000). Determinants and Performance Impacts of External Technology Acquisition. Journal of Business Venturing, 16, 255-283.

38.

Judge W. Q., & Miller A. (1991). Antecedents and Outcomes of Decision Speed in Different Environmental Contexts. Academy of Management Journal, 34, 449-463.

39.

Jung D. I., & Avolio, B. J. (1999). Effects of Leadership Style and Followers' Cultural Orientation on Performance in Group and Individual Task Conditions. Academy of Management Journal, 42, 208-218.

40.

Killing, P. (1983). Strategies for Joint Venture Success. IN.:Praeger.

41.

Kim, Nam-Myun, & Youn, Myoung-Kil (2014). Global Distribution Enterprises' Entry into the Chinese Market: Focus on the Three Northeastern Provinces. International Journal of Industrial Distribution & Business, 5(3), 25-34.

42.

Kirkman, B. L., & Rosen, B. (1999). Beyond Self-management:Antecedents and Consequences of Team Empowerment. Academy of Management Journal, 42, 58-74.

43.

Liao, Shih-Chung (2014). Building a Product Design of Innovative Strategy for Creating Enterprise Development. International Journal of Industrial Distribution & Business, 5(1), 17-25.

44.

Locke, E. A., & Latham, G. P. (1990). A Theory of Goal Setting and Task Performance. Englewood Cliffs, NJ: Prentice-Hall.

45.

Love, L. G., Priem, R. L., & Lumpkin, G. T. (2002). Explicitly Articulated Strategy and Firm Performance Under Alternative Levels of Centralization. Journal of Management, 28(5), 611-627.

46.

Luo, Y., & Peng, M.. (1999). Learning to Compete in a Transition Economy: Experience, Environment, and Performance. Journal of International Business Studies, 30(2), 269-295.

47.

Madhok, A. (1995). Revisiting Multinational Firms Tolerance for Joint Ventures: A Trust-based Approach. Journal of International Business Studies, Spring, 117-147.

48.

Mintzberg, H. T. (1979). The Structuring of Organizations. Englewood Cliffs, NJ: Prentice-Hall.

49.

Neeraj, Kumari (2015). Up-gradation in Human Resource Management Practices for the Biotech Industry in India. Journal of Asian Finance, Economics and Business, 2(2), 27-34.

50.

Nobel, R., & Birkinshaw, J. (1998). Innovation in Multinational Corporations, Control and Communication Patterns in International R&D Operations. Strategic Management Journal, 19, 479-496.

51.

O'Donnell S. W. (2000). Managing Foreign Subsidiaries: Agents of Headquarters, or an Interdependent Network?. Strategic Management Journal, 21(5), 525-548.

52.

Osterloh, M., & Frey, B. S. (2000). Motivation, Knowledge Transfer and Organizational Forms. Organization Science, 11(5), 538-550.

53.

Pascale, R. T., & Athos, A. G. (1981). The Art of Japanese Management. Simon & Schuster.

54.

Paterson, S. L., & Brock, D. M. (2002). The Development of Subsidiary Management Research: Review and Theoretical Analysis. International Business Review, 11, 139-163.

55.

Pearce, R. D. (1999). Decentralized R&D and Strategic Competitiveness: Globalized Approaches to Generation and Use of Technology in MNCs. Research Policy, 28, 157-178.

56.

Peters, T. J., & Waterman, R. H. (1983). In Search of Excellence. New York: Harper & Row.

57.

Phan, P. H. (2000). Taking Back the Boardroom: Better Directing for the Millennium. Singapore: McGraw-Hill.

58.

Ramaswamy, K., Gomes, L., & Veliyath, R. (1998). The Performance Correlates of Ownership Control: A Study of U. S. and European MNE Joint Ventures in India. International Business Review, 7, 423-441.

59.

Richards, M. (2000). Control exercised by U.S. Multinationals over their Overseas Affilites: does Location make a Difference? Journal of International Management, 6, 105-120.

60.

Robbins, S. P. (1990). Organization Theory. Englewook Cliffs, N.J.: Prentice Hall.

61.

Rodgrigues, C. A. (1995). Headquarters-foreign Subsidiary Control Relationship: Three Conceptual Frameworks. Empowerment in Organizations, 3, 25-34.

62.

Rugman, A., & Verbeke, A. (2001). Subsidiary-Specific Advantages in Multinational Enterprises. Strategic Management Journal, 22, 237-250.

63.

Schann, J. L. (1988). How to Control a Joint Venture even as a Minority Partner. Journal of General Management, 14(1), 4-16.

64.

Schminke M, Ambrose, M. L., & Cropanzano, R. S. (2000). The Effect of Organizational Structure on Perceptions of Procedural Fairness. Journal of Applied Psychology, 85, 294-304.

65.

Sims, H. P. (1996), Businesses Without Bosses. New York :Wiley.

66.

Stevenson, H. H., & Gumpert, D. E. (1985). The Heart of Entrepreneurship. Harvard Business Review, 85(2), 85-93.

67.

Taggart, J. H. (1997). An Evaluation of the Integration-Responsiveness Framework: MNC Manufacturing Subsidiaries in the UK. Management International Review, 37, 295-318.

68.

Venaik, S., Midgley, D. F., & Devinney, T. M. (2005). Dual Paths to Performance: The Impact of Global Pressures on MNC Subsidiary Conduct and Performance. Journal of International Business Studies, 36, 655-675.

69.

Venkatraman, N., & Ramanujam, V. (1986). Measurement of Business Performance in Strategy Research: A Comparison of Approaches. Academy of Management Review, 11(4), 801-814.

70.

Yan, A., & Gray, B. (1994). Bargaining Power, Management Control and Performance in United States-China Joint Ventures: A Comparative Case Study. Academy of Management Journal, 37, 1478-1517.

71.

Young, S., & Tavares, A. T. (2004). Centralization and autonomy:Back to the future. International Business Review, 13(2), 215-237.

The Journal of Distribution Science(JDS)

선공개 논문 논문 투고 OA 정책