Hambrick and Mason¡]1984¡^, with their ¡§upper echelon¡¨ perspective, proposed that top managers had great influences on organizational performances. Then, more and more scholars paid attention to the issues of the top management teams¡]TMT¡^. Although the impact of top management teams has been widely studied, research that tests the applicability of TMT variables on MNC is zero. The top management teams of the MNC included expatriates and local managers¡]Tung, 1982; Zeira and Shenkar, 1986¡^, would show higher richness and variety. Therefore, this study will use two independent variables: ¡uthe strategic roles of MNC subsidiaries¡vand ¡uthe nationalities of the MNC¡vto study the influences of these two independent variables on the traits, heterogeneity and interaction of the top management teams of the subsidiaries in Taiwan. The traits of the top management teams included the percentages of the local managers, average age, educational level and organizational tenure of the top management teams. The heterogeneity of the top management teams included the variation of the age, educational level and organizational tenure of the top management teams. The interaction of the top management teams included the extent to the social integration, communication frequency, and informal communication of the top management teams. Using ANOVA analysis on samples of 46 manufacturing MNC subsidiaries in Taiwan, the study finds that the strategic roles of the MNC subsidiaries have significant influences on the educational level, social integration and communication frequency of top management teams. In addition, the nationalities of the MNC have significantinfluences on the age, educational level and organizational tenure.

The Euro has become the mutual monetary union in 2002 and there are 13 countries which is going to join the European Union one after another since 2003. The enormous and growing market attracts lots of foreign companies to invest. The research categorizes the resources by the resources-based view into four groups, physical assets, intangible assets, human capital and organization capability, and discuss how the Taiwan foreign subsidiaries use their controlled resources to be their strategic advantages and operate successful in local country. By the way of interviewing the case company in depth, this paper has the following conclusions: 1.The products which were sold in France have to fit in with the characteristics of local market and be competitive. 2.The investment in France should have sufficient funds and do well the risk management. 3.The international division of labor is an advantage basis for Taiwan companies in France. 4.The international brand advantage increases the possibility of entering French market. 5.The export experience and customer basis in Europe are contributive to the development of Taiwan foreign subsidiaries. 6.The combination of opinions between the local employees and parent company is the key factor while doing business in France. 7.The capability of local management team is the key factor of foreign subsidiaries in Europe.

Thesis (Ph. D.)--Rutgers University, 2009. / "Graduate Program in Industrial Relations and Human Resources." Includes bibliographical references (p. 120-131).

O objetivo deste trabalho foi investigar a relação entre o ambiente institucional brasileiro e a conquista de mandatos mundiais pelas subsidiárias estrangeiras. Como parte de um novo modelo de empresa multinacional que precisa combinar a organização de uma rede integrada que proporcione flexibilidade, facilite o aprendizado, a transferência de conhecimento com a inovação entre as diversas unidades (BARTLETT, GHOSHAL, 1998), a subsidiária se destaca como unidade de análise na literatura em estudos que investigam os seus papéis, seu processo de evolução e a maneira como concorrem entre si em diferentes países (BARTLETT, GHOSHAL, 1986; BIRKINSHAW, MORRISON, 1995). Dependendo do mercado em que atuam, da receptividade da matriz, da sua capacidade de inovação e capacidade de criar competências podem passar por um processo de aumento gradual de suas responsabilidades e relevância estratégica, podendo conquistar o mandato mundial,ou seja, o ganho do controle estratégico pela subsidiária sobre determinadas atividades e região. Concorrendo em diferentes ambientes institucionais, as subsidiárias representam a busca das multinacionais por vantagens de localização, por fatores institucionais que estimulem a inovação e desenvolvimento tecnológico e de um aparato que o sustente como por exemplo um sistema de proteção à propriedade intelectual eficiente e incentivos fiscais. Assim, a visão deste trabalho sobre as instituições abrange os pilares regulatório, normativo e cultural-cognitivo, segundo o arcabouço teórico desenvolvido por Scott (2008). A fim de analisar o mandato mundial nas subsidiárias foi realizado um survey com 172 subsidiárias estrangeiras no Brasil. Para investigar a influência institucional no \"mandato mundial\" foi utilizada a técnica de estudo de caso com a subsidiária brasileira da Siemens AG, de origem alemã. Os resultados do survey mostraram que 25,6% das subsidiárias respondentes podem ser classificadas como de mandato mundial. O estudo de caso, por sua vez, apresentou algumas evidências de que há uma relação positiva entre ambiente institucional favorável e a conquista do mandato mundial pelas subsidiárias revelada principalmente nas leis de incentivo fiscal para a atração de centros de P&D para o Brasil, principalmente por meio da redução de custos. As certificações tri-norma também são relevantes na inserção e integração da subsidiária à a cadeia de valor global. Aspectos culturais como características da mão-de-obra brasileira também são vistos como fator de destaque da subsidiária brasileira. / The purpose of this dissertation is to investigate how the achievement of world mandates by foreign subsidiaries located in Brazil is related to country\'s institutional environment. As part of a new model of multinationals companies\' organization, that need to combine the organization of an integrated network that provides flexibility, learning and knowledge transfer with innovation among the various units (Bartlett, Ghoshal, 1998), the affiliated company stands out as a distinct unit of analysis. In the literature about subsidiaries there are studies investigating their roles, the process of evolution and how they compete in different countries (Bartlett, Ghoshal, 1986; Birkinshaw, Morrison, 1995). Depending on the market in which they operate, the receptivity of their parent company, their capacity for innovation and building skills, they pass through a process of gradual increase of their strategic autonomy and relevance, gaining responsibilities and finally achieving the world mandate, the strategic control by the subsidiary on certain activities and region. Competing in different institutional environments, the subsidiaries represent the search by multinational enterprises for locational advantages and institutional factors that push innovation and technological development and a famework that supports this through, for example, an efficient intellectual property protection system and tax incentives (OLIVEIRA JR et al, 2009). Thus, the view on institutions of this study covers the regulatory, normative and cultural-cognitive pillars, according to the theoretical framework developed by Scott (2008). In order to analyze the word mandate of the subsidiaries a survey was conducted with 172 foreign subsidiaries stablished in Brazil. To investigate the institutions\' influence on \"world mandate\" a case study was conducted with Siemens AG\'s Brazilian subsidiary. The results of the survey showed that 25.6% of the participant subsidiaries can be classified as world mandate. The case study presented some evidences of a positive relationship between institutional environment and the achievement of world mandate by subsidiaries. This influence was perceived mainly through incentive laws in the attraction of R&D centers to Brazil, especially through cost reduction. The tri-standard certifications are helpful for the subsidiary\'s insertion and integration in the global value chain, an this fact makes the standard a requirement for all the providers of the company. The case showed that cultural features such as flexibility of Brazilian labor are a factor for subsidiary\'s success as well.

This article analyzes political strategies of MNC subsidiaries in emerging markets. We find that institutional pressures from public and private non-market actors in the emerging market lead to increased political activism. Furthermore, we find that these relationships become stronger, when the external pressures are joined by strong firm-internal pressures. Our findings contribute to the scarce literature on firms' political strategies in emerging markets. They also support recent criticism of institutional theory's strong focus on isomorphism as the most important legitimacy-conveying mechanism. We argue that the isomorphism-based either-or logic gives way to stronger agency of the subsidiary and to a logic of active negotiation and social construction of the subsidiary's legitimacy in the emerging market. Our findings show support for this idea as political activism is one such way how the subsidiary's legitimacy can be built and nurtured.

The objectives of this study are to determine the effect on certain financial statement relationships of using the equity method to account for subsidiaries in lieu of consolidation and to gather evidence to suggest whether or not bond rating agencies take into consideration these effects in rating corporate bonds. Sixty manufacturing companies listed in COMPUSTAT as having a subsidiary accounted for by the equity method compose the experimental group. The remaining manufacturing companies in COMPUSTAT compose the control group. Computation of eight variables from COMPUSTAT provided data from the companies' original financial statements. Consolidating the subsidiaries of the experimental companies using annual 10-K data made it possible to recompute the same eight variables with these subsidiaries consolidated into the parents' statements. Comparison of the variables for the companies before and after consolidation revealed that five of the eight variables were substantially different and that the differences were statistically significant. Horrigan's multiple regression bond rating model provided indirect evidence to examine which method (equity or consolidation) bond raters use in their rating process. The model is a surrogate for the rating process. Use of the model necessitated calculation of two sets of regression coefficients—one using data in which subsidiaries were accounted for by the equity method and a second when the subsidiaries are consolidated. A derivation sample drawn randomly from both the experimental and control groups provided the data for computation of the coefficients. Comparison of predictions using the two sets of coefficients and validation sample company data revealed that the consolidated method data generated predictions in greater agreement with Moody's bond ratings than did the equity method data. The N-probit technique indicated that the predictions of Horrigan's model are not biased. The research suggests that bond raters find data based on consolidation of subsidiaries more important in their analyses than data based on the equity method. This suggests that the FASB should modify generally accepted accounting principles with regard to the equity method of accounting for unconsolidated, majority-owned subsidiaries.

This study assessed multinational corporations (MNCs) from developed markets with subsidiaries based in the emerging markets, to determine whether being based in a dynamic market influences the positive attention in terms of support and autonomy that these subsidiaries receive from headquarters. The purpose of the research was to expand on previous research conducted by Bouquet and Birkinshaw (2008) by surveying subsidiaries from emerging markets, and determining whether MNCs amend their attention strategy to subsidiaries based in emerging markets as a result of their limited understanding of the dynamics of the local business environment, or whether they maintain a standardised strategy for engaging all subsidiaries. 39 MNC subsidiaries from the emerging markets of Southern Africa, Latin America and the Middle East were surveyed via a web-based questionnaire, assessing various aspects of their business activities and local business environment to determine the type of positive attention which subsidiaries in these markets received from headquarters. The results indicated that the business environment within emerging markets is complex and requires alternative forms of assessment and involvement by headquarters, however overall subsidiaries based in emerging markets do not receive the support and autonomy from headquarters which is required to exploit local opportunities effectively. / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted

No / This article investigates the relative importance and variability of the country-of-origin effect in employee relations approaches of US subsidiaries within the context of diversity of employee relations patterns in home- and host-country business systems and the influence of important industry forces. It is based on a representative survey of US subsidiaries and indigenous firms in the UK. The cross-sectional comparison with indigenous UK firms confirmed a distinct US country-of-origin imprint in employee relations patterns in US subsidiaries. However, the magnitude of such an effect cautions against assumptions of popular stereotypes and reflects, inter alia, the diversity of employee relations approaches among US parent companies as well as developments in the UK industrial relations landscape over the last decades. The intra-US analysis revealed the importance of both the level and type of industry internationalisation in shaping the strength and nature of the country-of-origin influence. On the basis of the findings, the article highlights lessons to be learned for the study of cross-border policy-transfer issues in MNCs.

No / Purpose This paper explores the relationships between the strategic development of subsidiaries and the likelihood of subsidiaries exporting on an intra-regional basis to European markets. Research Approach The paper defines the strategic development of subsidiaries as increases in, autonomy, embeddedness in host locations, the use of networks and host country sourcing. The location of subsidiaries in industrial clusters is also considered. Use is made of multinomial probit analysis of a survey of 391 UK based subsidiaries to identify the relationships between the strategic development of subsidiaries and supplying European markets. Findings The study finds some evidence that there are links between increasing networks and supplying European markets, but there is no evidence that developing host country sourcing is associated with European supply. Location in an industrial cluster is consistently associated with supplying European markets and autonomy also appears to be closely associated with supplying European markets. Research Limitations Extension of the research is required to other regional trade blocs such as Mercosur and NAFTA. The role of networks and the links to location in industrial clusters requires further exploration and future research needs to include the services and knowledge-intensive sectors. Value The paper extends our understanding of subsidiary development in the context of intra-regional trading and thereby expands the literature on the regional strategy of multinationals. It highlights the importance of different types of autonomy for encouraging intra-regional trade by foreign-owned subsidiaries, and the central role of location in industrial clusters.

No / Das deutsche Modell der Beziehungen zwischen Arbeitgebern und Arbeitnehmern innerhalb eines Unternehmens ¿ vor allem die betriebliche Mitbestimmung ¿ stand lange Zeit in der Kritik, während das anglo-amerikanische Modell als überlegen angesehen wurde. Welches Arbeitsbeziehungsmodell wählen deutsche und amerikanische Unternehmen in einem in Hinblick auf die Ausgestaltung der Arbeitsbeziehungen freizügigen Umfeld, wie es in Großbritannien herrscht? Wie wirkt sich die Wahl des Modells auf Arbeitsproduktivität und Profi tabilität der Tochterunternehmen aus? / Hans Bockler Fondation