This article investigates the determinants of subsidiaries' profitability using a unique dataset of more than 23,000 listed and unlisted subsidiaries worldwide over the period 1994-2005. We find that profitable parent companies are able to transfer some of the intangible assets that make them profitable to their subsidiaries. Our results indicate that good institutions (measured by the Worldwide Governance Indicators) are associated with better performance for companies' subsidiaries. When we categorize countries in terms of the origins of their legal systems, we also find that this dimension of institutional quality is generally associated with better performance. Controlling for both legal origins and country governance institutions, we find that both sets of institutions are significantly related to subsidiaries' performance, and that there is an overlap in their explanatory power. (authors' abstract)

Submitted by Odilio Hilario Moreira Júnior (odilio@espm.br) on 2016-11-22T12:39:49Z No. of bitstreams: 1 Matheus Baldo Cordeiro.pdf: 1423668 bytes, checksum: 1d8af65d79d5d90569231d6981b685b1 (MD5) / Approved for entry into archive by Odilio Hilario Moreira Júnior (odilio@espm.br) on 2016-11-22T12:41:35Z (GMT) No. of bitstreams: 1 Matheus Baldo Cordeiro.pdf: 1423668 bytes, checksum: 1d8af65d79d5d90569231d6981b685b1 (MD5) / Approved for entry into archive by Odilio Hilario Moreira Júnior (odilio@espm.br) on 2016-11-22T12:41:58Z (GMT) No. of bitstreams: 1 Matheus Baldo Cordeiro.pdf: 1423668 bytes, checksum: 1d8af65d79d5d90569231d6981b685b1 (MD5) / Made available in DSpace on 2016-11-22T12:45:31Z (GMT). No. of bitstreams: 1 Matheus Baldo Cordeiro.pdf: 1423668 bytes, checksum: 1d8af65d79d5d90569231d6981b685b1 (MD5) Previous issue date: 2016-02-26 / In an increasingly globalized world, firm internationalization has become a major strategy for companies to be competitive in the market. However, firms are facing turbulent times such as economic crisis. The recession effects are extensively studied in the economic field and it proves that these periods are inevitable. Nonetheless, there is a lack of studies in the management field, considering the economic crisis effects, and even more particularly, focusing on the multinational enterprises’ subsidiaries performance during recession times. This study intends to analyze and comprehend which are the relevant aspects for these subsidiaries to achieve a good performance and, therefore, they remain competitive during economic crisis in the market they operate. To investigate the effect, we analyze the case of Japanese subsidiaries located in the European market during pre-crisis and post-crisis, that started in the US and spread all over the world. It was used longitudinal data including the years between 2006 and 2013. A linear regression with panel data and fixed effects had been applied to generate the models used for the analysis. The results show how internal aspects related to accumulated experience, entry mode considering the same nationality of partners and the amount of expatriated staffs, as well as macroeconomic external aspects involving low inflation rate and population income indicators, impacted positively in the Japanese subsidiary performance during crisis periods. The performance is also higher when considering pre-crisis period. / Em um mundo cada vez mais globalizado, a internacionalização de empresas tem se tornando cada vez mais uma importante estratégia para ser competitivo no mercado. Entretanto, as empresas se deparam com períodos de turbulência, como as crises econômicas. Os efeitos de recessões são bastante estudados na área econômica e provam que estes períodos são inevitáveis. Porém, nota-se uma escassez de estudos na área de administração, que considerem o efeito da crise econômica e, mais ainda, no que tange ao desempenho de subsidiárias estrangeiras de empresas multinacionais durante este período recessivo. Este estudo tem o intuito de analisar e compreender quais os aspectos relevantes para que estas subsidiárias obtenham um bom desempenho e assim se mantenham competitivas durante as crises econômicas no mercado em que atuam. Para investigar este efeito, foi analisado o comportamento das subsidiárias estrangeiras de empresas japonesas localizadas no continente europeu nos períodos pré- e pós-crise econômica, que se iniciou nos Estados Unidos em 2008 e se estendeu para todo o mundo. Utilizou-se de dados longitudinais englobando o período de 2006 a 2013. Foi empregada a regressão múltipla com dados em painel com efeitos fixos para a geração dos modelos utilizados para análise. Os resultados mostram que aspectos internos relacionados ao acúmulo da experiência local, modo de entrada utilizando parceiros da mesma nacionalidade e a quantidade de expatriados, como também aspectos externos macroeconômicos como menor taxa de inflação e indicadores de renda da população, impactam positivamente no desempenho da subsidiária estrangeira durante o período da crise. Esta performance também se mostra superior nos anos que antecedem a crise econômica.

The development of adequate performance evaluation techniques for appraising foreign subsidiaries and their managers in an environment different from their domestic ones has been suggested as an area where management accounting should be extended. This study concerned the performance evaluation of foreign subsidiary managers with the following objectives: (1) to examine the relationships among environmental factors and foreign subsidiary performance, (2) to develop a multinational enterprise (MNE) environmental model to evaluate the performance of subsidiary managers on the basis of controllable factors only, and (3) to test the model in American multinational enterprises for the existence of association among environmental factors and measured performance of foreign subsidiaries. The research method employed in this study was to test for association between noncontrollable environmental factors of a particular foreign country and measured performance of the foreign subsidiary (in terms of ROI) in that particular country. Major noncontrollable factor groups used were economic, political-legal, educational, and social environmental constraints.

隨著中國大陸近十餘年來的改革開放，以低廉的勞工與土地成本、及高度持續之經濟成長，吸引台商紛紛將過去的台灣經驗移植到大陸。本研究從大陸子公司角度探討影響其經營績效之因素，分析台商母公司的智慧資本對大陸子公司經營績效的影響，特別將母子公司間的移轉機制與子公司的吸收能耐納入實證分析中。 本研究採用田野研究、問卷調查、與實證資料檢定，並結合多種不同的資料庫來源，以在大陸設有子公司進行投資活動之我國公司為研究對象進行問卷調查，回收之有效樣本合計共103家。路徑分析之結果發現大部分台商母公司所擁有的智慧資本會直接影響大陸子公司的經營績效。在智慧資本的移轉成效上，台商人力資本有移轉和吸收效果，但創新資本的效果則不佳。在上市櫃電子業之樣本下，母公司所擁有的人力資本係先透過影響母子公司間的移轉機制，再間接影響大陸子公司的資產報酬率。當台商母公司所擁有的人力資本愈高時，有助於提高大陸子公司之吸收能耐，並間接影響大陸子公司的資產報酬率。另外，迴歸分析之結果發現，不同智慧資本組成要素對大陸子公司經營績效影響的程度並不相同，人力資本對經營績效有顯著的正效果，而創新資本對經營績效的影響並不顯著。本研究最後建議理論或實務上之管理意涵。 / Over the past decade, the regulations of China have changed, and it provided a huge resource of cheap labor and land. Following the rapid economic growth has attracted Taiwanese enterprises to transfer their success experiences to China. It is important to examine the determinants of performance of subsidiary in China. This study analyzes the relationship between intellectual capital and performance covering the transfer from Taiwanese parent to Chinese subsidiary. This study particularly highlights the role of transfer mechanism and absorptive capacity in explaining the effect of intellectual capital on performance. This study integrates multiple research methodologies including field study, questionnaire, and empirical study. Since no single database exists to support this study, multiple sources are employed for constructing the sample frame. Based on a sample of 103 subsidiaries of Taiwanese enterprises in China, results of path analysis indicate that intellectual capital from parent is positively associated with the performance of subsidiary. In general, the results support that the effects of human capital on performance are mediated by both transfer mechanism and absorptive capacity, but the transfer roles of innovation capital are not supported. Finding from the public electronic industry reveals that the influence of human capital on return of assets is indirect through the mediating role of transfer mechanism. An absorptive capacity path is presented where absorptive capacity is associated with return of assets, and human capital influences absorptive capacity. Moreover, regression analyses demonstrate that different intellectual capital elements have a different effect on organizational performance. Human capital is important in explaining the variations in the performance of subsidiary, while innovation capital has little or no effect. Implications for theory and research are discussed.

Yes / We examine how ties with multiple host-country political institutions contribute to MNE subsidiary performance in countries with weak formal institutions. We suggest that forging relationships between subsidiaries and host-country government actors, local chieftains, and religious leaders generates regulative, normative, and cultural-cognitive political resources. We integrate institutional and configuration theories to argue that similarity to an ideal configuration of the three political resources contributes to MNE subsidiary performance, and that the more dysfunctional host country institutions, the greater the impact on performance. We test our hypotheses using primary and archival data from 604 MNE subsidiaries in 23 Anglophone sub-Saharan African countries and find support for our hypotheses. In our conclusion we discuss the wider theoretical, managerial, and public policy implications of our findings.