The effects of institutions and subsidiary competence on the international market orientation in foreign-owned subsidiaries

Dahms, Sven (2015) The effects of institutions and subsidiary competence on the international market orientation in foreign-owned subsidiaries. Management Research Review, 38 (12). pp. 1285-1305.

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Abstract

Purpose: The purpose of this paper is to enhance our understanding on the effects of national and subnational institutions as well as subsidiary competences on the international market orientation in foreign-owned subsidiaries.

Design/methodology/approach: A postal survey has been conducted based on a census-like database of foreign-owned subsidiaries in the Northwest of England.

Findings: The findings show a positive relationship on the international market orientation for subsidiaries with extended competences and strong links to local suppliers, universities and competitors. A negative association has been found concerning formal institutional distance and strong links to local customers and government institutions.

Research limitations/implications: The survey is limited to foreign-owned subsidiaries in the Northwest of England.

Practical implications: This study implies that subsidiary managers need to take national and subnational institutions as well as subsidiary specific competences into consideration when looking for international market expansion.

Item ID: 52801
Item Type: Article (Research - C1)
ISSN: 2040-8269
Keywords: institutions; subsidiary development; MNE; institutional distance; subnational institutions; subsidiary competences
Date Deposited: 13 Apr 2018 02:23
FoR Codes: 15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1503 Business and Management > 150308 International Business @ 100%
SEO Codes: 97 EXPANDING KNOWLEDGE > 970115 Expanding Knowledge in Commerce, Management, Tourism and Services @ 100%
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