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

• 발행기관: 한국유통과학회
• 저자명: Byoung Goo Kim Gyu Bae Kim
• 간행물 정보: 『유통과학연구(JDS)』제13권 제8호, 15~25쪽, 전체 11쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2015.08.30

영문 초록

Purpose - There is a lack of research on how much corpo-rate control is sufficient for effective subsidiary business-related decision making. To address this research gap, this study ana-lyzes the impact of the level of control of a Korean corpo-ration'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 relation-ship between the headquarters level of control over the sub-sidiaries and their performance. Results - The results show that the greater an organization's headquarters control over strategic issues, the greater the sub-sidiary's non-financial performance. However, quick decision-mak-ing through decentralization promotes the rapid selection of suc-cessful new products that can provide a competitive advantage. Conclusion - This study shows that the impact of control lev-els 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.

목차

Abstract

1. Introduction

2. Literature Review & Hypotheses Setting

3. Methodology

4. Empirical Analysis

5. Discussion and Conclusion

References

키워드

Multinational Company Headquarter Foreign Subsidiary Control Level Subsidiary Performance Chinese Market