Autonomy, Embeddedness and the Performance of Foreign Owned Subsidiaries
McDonald, Frank Warhurst, S. Allen, M.
McDonald, Frank
Warhurst, S.
Allen, M.
Publication Date
2008
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Abstract
This paper investigates whether changes in autonomy and embeddedness
in host locations by foreign owned subsidiaries are associated with
improvements in performance by subsidiaries. The results provide evidence
that increasing operational decision-making autonomy is associated with
enhanced performance as measured by both subjective and more objective
measures of performance. The results on the importance of increasing strategic
decision-making autonomy and embeddedness are less clear, with
improved performance being detected in some cases, but only for the subjective
measure of performance.
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McDonald, F., Warhurst, S. and Allen, M. (2008). Autonomy, Embeddedness and the Performance of Foreign Owned Subsidiaries. Multinational Business Review. Vol. 16, No. 3, pp. 73-92.
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