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.

Recently for over 20 years, the scholar who studies multinational corporation study the focus to move from MNC headquarter to MNC subsidiaries gradually, make the research about subsidiary's management increase gradually. And the autonomy is a subject that is worth studying among them, for MNCs, the subsidiary¡¦s autonomy is more and more important. Supports MNC headquarter and carries out the global strategies are subsidiary¡¦s mission. But with the difference of the control system of MNC, with the difference of the fierce change degree of environment, will cause the difference of subsidiary¡¦s autonomy. Try to find out the factor influencing autonomy from Taiwan and mainland subsidiary in this research. This research studies with four factors to find out which variable affect the extent of subsidiary¡¦s autonomy: First, how the subsidiary manager¡¦s traits influence on MNC subsidiary¡¦s autonomy; Second, how the MNC headquarters¡¦ traits influence on MNC subsidiary¡¦s autonomy; Third, how the environmental traits influence on MNC subsidiary¡¦s autonomy; Fourth, how the MNC subsidiary¡¦s traits influence on MNC subsidiary¡¦s autonomy. This research takes the measure of case study by interview. The case company sets up subsidiaries in Taiwan and mainland, and for the high-order executive of the interview case company. Originally discover the headquarter exerts a tremendous influence, nearly determine the extent of subsidiary¡¦s autonomy. And subsidiary manager's great ambition is also an important influence factor. In addition, discover that subsidiary's autonomy is dynamic equilibrium, result of compromise, and subsidiary¡¦s autonomy changes like a cycle.

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.

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.