The Determinants of MNC Subsidiary¡¦s Autonomy and Initiative An Empirical Study of MNC Subsidiary in Taiwan Abstract The research focus of MNC subsidiary has been transferred from HQ perspective to transnational network perspective. Under network perspective, MNC subsidiary¡¦s role and function have been widely recognized. Some subsidiaries do not play a receptive role dictated from HQ, but leap to an international player or product mandate. Through fifty years economic development, the MNC Taiwan subsidiary¡¦s role has been changed. Therefore, it is worthy to study the MNC Taiwan subsidiary¡¦s behavior. This thesis focuses on the determinants of subsidiary¡¦s autonomy and initiative. We define the subsidiary autonomy as the level to which the HQ delegate and the subsidiary initiative as the result of subsidiary¡¦s autonomous innovation. The subsidiary autonomy demonstrates the subsidiary¡¦s ability to operate independently. The subsidiary initiative exhibits the subsidiary can contribute to the whole MNC. This research utilizes the HQ¡Xsubsidiary dyadic relationship characteristics, the level to which subsidiary¡¦s dependence on MNC, the subsidiary¡¦s resource and subsidiary¡¦s network characteristics as the explanatory variables to examine the effects on subsidiary¡¦s autonomy and initiative. The rationales of the hypotheses include procedure justice theory, resource dependence perspective, resource based view and MNC network perspective. This research uses survey to collect data. The population is the list of foreign enterprises in Taiwan published by Dun and Bradstreet, 2000. The subsidiaries belong to manufacturing industry and non-financial service industry. The subsidiaries are owned by foreign MNC. Its scale is above 30 people and its operation time must exceed one year. We use cluster analysis to formulate the subsidiary role, and use multi-regression and ANCOVA analysis to examine the effects of independent variables on subsidiary¡¦s autonomy and initiative. After analyzing 67 MNC¡¦s Taiwan subsidiaries, the results reveal that HQ¡¦s procedure justice, subsidiary¡¦s integration with MNC, the subsidiary¡¦s local responsiveness and subsidiary¡¦s relative capability have influence on subsidiary autonomy. In addation, HQ¡¦s procedure justice, subsidiary¡¦s dependence of knowledge resource on MNC, subsidiary¡¦s ownership structure, subsidiary¡¦s entrepreneurship level, subsidiary¡¦s relative capability, subsidiary¡¦s local responsiveness and subsidiary autonomy can affect the subsidiary initiative. These results assert that the subsidiary¡¦s role is highly influenced by its position in MNC network. Therefore this finding coincides with MNC network perspective. However, while examining the subsidiary¡¦s behavior, we still can¡¦t neglect the effects of HQ-subsidiary dyadic relationship and subsidiary¡¦s intrinsic characteristic, its resource. Therefore, these dissertation results respond to Birkinshaw¡¦s perspective. The subsidiary behavior is simultaneously influenced by HQ, subsidiary and local environment. Moreover, these research findings also correspond to the three subsidiary research stream, including HQ-subsidiary relationship, subsidiary role and subsidiary evolution. Finally, by conducting this research in Taiwan, this results also reply the researchers¡¦ attention on the MNC subsidiaries in the developing countries.

As the rises of the market and industry cluster of China, the importance of the Taiwan¡¦s cluster effect to multinational corporations¡]MNCs¡^will have the changes. And the changes of cluster effect between Taiwan and China have had the impact on MNC Taiwan subsidiary¡¦s role. This thesis focuses of the cluster effect between Taiwan and China that changes the MNC¡¦s Taiwan subsidiary¡¦s role. With regard to the factors affecting cluster of industries, previous studies have based mainly on Porter¡¦s Diamond Model, which includes factor conditions, demand conditions, related and supporting industries and firm strategy, structure and rivalry. Besides, according to the series research by Birkinshaw, the HQ assignment and the subsidiary¡¦s behavior will also have the impact on subsidiary¡¦s role. This thesis will study the changes between these three dimensions and MNC¡¦s Taiwan subsidiary¡¦s role. This thesis uses the case study in order to support the formation of research structure and hypothesis, which also survey to collect data. The population is the list of foreign enterprises in Taiwan published by Dun and Bradstreet, 2000. The subsidiaries belong to manufacturing industry and service industry. The subsidiaries are owned by foreign MNC which must operate over one year in Taiwan. We use multi-regression to examine the relationships between the dependent variables and the changes of MNC Taiwan subsidiary¡¦s role. After analyzing 60 MNC¡¦s Taiwan subsidiaries, the results reveal that HQ assignment, the subsidiary¡¦s initiative behavior and the changes of cluster effect between Taiwan and China will have the influence on MNC¡¦s Taiwan subsidiaries¡¦ roles. Therefore, these dissertation results respond to Birkinshaw¡¦s perspective. The subsidiary behavior is simultaneously influenced by HQ, subsidiary and local environment.

In order to create win-win solutions, outstanding multinational companies usually look for a well-performed cluster to join. On the one hand, the local cluster can upgrade their competitiveness by leveraging the resources of the MNCs, such as technologies, specialized materials, human resources, and also learning from their management know-how. On the other hand, MNCs can enjoy benefits, such as lower cost, more effective logistics, and approaching the local market. Both the development of the Export Processing Zone and the success of high-tech industry of Taiwan are good examples. The TFT-LCD industry is the newly arisen one after semi-conductor industry in Taiwan, and the government has positively pushed TFT-LCD industry to be the core competitive-advantage industry, and expect to create 1 trillion NT dollars in 2006 to become worldwide FDP research and development country. Though the local companies work hard for years, they build up the whole supply-chain as a competitive cluster. This research focuses on the MNCs effects on the development of the TFT-LCD cluster, and uses multi-case methodology to analyze the MNC suppliers Corning, Asahi and the local player PVU in the TFT glass industry. The conclusion of the research shows that the strategy evolution of the MNC TFT glass suppliers played the vital role of the upgrading of whole industry becoming an embedded cluster.

In the development of the global telecommunication industry, the telecommunications market in China is very important for development and planning of Multinational Corporations¡¦ (MNCs) global overall arrangement. Thus, the main purpose of this research is to discover the trend of international telecommunications industry, especially mobile communication industry. In addition, discuss the position and importance of China¡¦s telecommunications market within the global market under the framework of international telecommunication market. Moreover, we have to further analyze the policy and planning of the China government. Furthermore, We have to discuss the strategies and cooperated cases of telecom operators and equipment manufacturers in China¡¦s telecommunication market. Besides, Understanding the considerations of China government¡¦s criteria and principle of opening 3G in mainland China¡¦s telecommunication market is also an important issue. Finally, we have to realize what kind of role that foreign telecom firms act in the development of the China¡¦s telecommunications market.

The challenge of management development in multinational companies is not only the program design itself, to design a diversified and comprehensive program, but also how to implement the program worldwide consistently and efficiently. Many multinational companies face the dilemma of centralization or decentralization because both have strengths and weakness and the debates on which approach is better is never ending. Instead of using the single one approach for the whole program, companies can review the process, from needs collection, design and development to implementation and evaluation, to determine the right approach for each. It means to use the combination of centralization and decentralization to capture the strengths of both.

The thesis concentrates on culture, its levels and characteristics, including business culture. The first part focuses on cultural diversity and management of diversity in business culture, with emphasis on the related incorrect tendencies, caused by various culturally conditioned biases. The following part considers different aspects of intercultural communication, its possible barriers and the question of intercultural training. The practical part analyses an existing multinational corporation, particularly with regards to its corporate values, practices, corporate diversity and intercultural training. Furthermore, this part is complemented with a study of the culturally conditioned difficulties within the company, the influence of existing cultural differences on employee communication and cooperation, as well as on intercultural training. The outcome of the study are recommendations, which serve as a base for potential modifications of the corresponding company processes.

This study has investigated the evolution of Michelin Siam Group (MSG), a Thai subsidiary of the Michelin Group (France), over the period between 1987 and 2007. Particular attention has been given to the process of changing subsidiary roles as well as factors influencing the process. The study has adopted a qualitative case-study approach based on the data collected from interviews of senior managers at MSG. The analysis has demonstrated that over the past 20 years, MSG has undergone several changes in its charters and capabilities, with the changes in its roles accordingly. In its early years (pre-1997), MSG was a ??local implementer?? in its MNC network, mainly serving the local market in a limited range of product lines mandated by the headquarters (HQs). Its charters, both manufacturing and commercial charters, have since been extended to cover broader product lines and international markets beyond Thailand through the accumulation of production capabilities enhanced by a range of training programmes. MSG has thus increasingly shifted from a ??local implementer?? to a ??regional/global implementer??. More importantly, it has also been revealed that the changes in MSG??s roles have been strongly influenced by the HQs. Through its control over decision making, the HQs has been heavily involved in introducing changes at MSG. However, the role of subsidiary, industry, and local environment factors should not be neglected. MSG??s increasing capabilities and superior performance coupled with the favourable and dynamic local environment as well as the competitive nature of an industry have been found to have instigated HQs?? favourable decisions for MSG. While the HQs has been the dominant driver of MSG??s roles and changes in its roles, the findings of this study largely appear to support the influences of the interplay of corporate, subsidiary, industry, and local environment factors in shaping subsidiary roles over time.

The tension of enhanced performance has been guiding Multinational Corporations (MNCs) for decades. The complexity of their structure, the increasing competition, and the slowdown of the economy have encouraged MNCs to seek new ways to improve their internal efficiency and eventually their performance. Only few organisations have understood the fundamental relevance of sharing the experience and knowledge gained through innovations and best practices. We focus our study on the case of Swedish subsidiaries fully owned by Italian MNCs, and we aim to verify if their communication and knowledge transfer systems allow them to raise the performance or, on the contrary, prevent interaction and cooperation in order to improve the overall performance of the organisation.

China changed its communistic economy policy to the open one during these 20 years. China¡¦s cheap labor force, plentiful natural resources and vast market have attracted lots of MNC to settle subsidiaries/manufacturing plants there. But the unique political and economical system of China and the special culture of Guan-Xi had made many MNC fail in the entrance of China market. Therefore, many MNC rely on the knowledge and competence of Taiwan subsidiaries. This research deals with the extent to which factors would affect the interactions, especially the complementary relationship, between Taiwan and China subsidiaries. Regarding the characteristics of industry in which MNC are, the following factors increase the extent of complementary relationship between Taiwan and China subsidiaries: 1.The higher speed of technology replacing in the industry; 2.The more support by China government; 3. Their affiliated industries are highly globalized. Regarding the business models of MNC, the more consistency of which their customers¡¦ need have, the higher degree of complementary relationship between Taiwan and China subsidiaries are. Regarding specific of parent companies and subsidiaries, the following factors increase the extent of complementary relationship between Taiwan and China subsidiaries: 1.Subsidiaries rely more on HQ to get core resourses; 2.The more activities which Taiwan and China subsidiaries have in common.

Abstract This article tries to give out the possible practices for these MNCs¡¦ subsidiaries in Taiwan and the Government of Taiwan to prolong, sustain, and even transform their own capabilities and subsidiaries¡¦ status when facing the raising of emerging market of China. After rearranging lots of articles concerning MNCs, this article take the dyadic view (subsidiary ¡V subsidiary ) to discuss the relationship of the subsidiaries between the two sides. And, this article¡¦s dependent and independent variables are also come from two main research streams of the MNC (i.e. Bartlett and Ghoshal(1989) and Porter(1986)). Through out the two main research streams, this article can not only give practical suggestions for the subsidiaries in Taiwan and the government of Taiwan but also give some theoretical extensions and contributions. Besides, this article also ties to explore the possible types of regional resources allocations in Asia for these MNCs. The practical suggestions following the empirical results are as follows: 1.no matter what the roles of the subsidiaries in Taiwan will be, to maintain a acceptable performance result is important for not only sustain their own status but also contribute to receive new charters. 2. the subsidiaries in Taiwan need to foster their own specialized capabilities, promote internationalization mentality for these higher ranking executives, which can prolong their own advantages edge. 3. social interactions are as important as economic ones. Subsidiaries¡¦ executives need to focus on the cultivation of social capital. 4. good business environment help make integration of value activities, but not necessarily contribute to future status of the subsidiaries between the two sides. 5. government of Taiwan needs to build and maintain infrastructure for helping create subsidiaries¡¦ capabilities. This article also find out four main types of the resources allocations of the MNCs. 1.regional centric: featuring raw materials, manufacturing, product design, human resources being global scale, but finance and marketing being coordinated in southeast Asia region, sales and process design being coordinated in great China region. This type of strategy is similar to Bartlett and Ghoshal(1989)¡¦s international strategy. 2.tansnational centric: featuring product design and process design being coordinated in global scale, marketing and sales being coordinated in regional area. This type of strategy is similar to Bartlett and Ghoshal(1989)¡¦s transnational strategy. 3.global centric: featuring all the value activities are coordinated in global scale, let no one value activity is coordinated in Asia region. This type of strategy is similar to Bartlett and Ghoshal(1989)¡¦s global strategy. 4.regional centric: featuring product design and process design are coordinated in great China region, other value activities like manufacturing, finance management, accounting /law services being also coordinated in great China region. This type of strategy is similar to Bartlett and Ghoshal(1989)¡¦s multidomestic strategy. The meaning of these four types are as follows: 1.regionalized production is not antipode of globalization production. globalization means the linkage of different regional areas. Globalization and regionalization is the same coin of different sides. 2.responding to what Porter(1998) says, global competition is managing the integration of these interrelated and dispersed resources. 3. different types of value activities are dispersed in different regions. Firms need not to concentrate all the activities in one country or region but need tightly coordination. 4. compared to Malnight(2001), this article indicates four types of different strategies which represent different levels of coordination.