What determines MNC subsidiary performance? Evidence from China

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Journal Article

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Xiaowen, T., & Slocum, J.W. (2014). What determines MNC subsidiary performance? Evidence from China. Journal of World Business 49(3), 421-430.

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Copyright © 2013 Elsevier Inc. All rights reserved.

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The paper challenges the view that MNC dictates a subsidiary’s business strategy and operations in accordance with the integration-responsiveness (IR) framework. The paper integrates the IR framework with contingency theory to argue that a subsidiary needs discretion to craft its own effective business strategy in light of the environmental exigencies facing the subsidiary in the host country. It may do so at variance with the MNC’s strategy. Evidence from China supports that subsidiary managers should take strategic initiatives in response to specific host country environment.

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