Institutional Distance and Headquarters-Subsidiary Relationship Quality: The Moderating Role of Institutionalization of Headquarters’ Practices in Subsidiaries

Through the lens of the institutional theory, we developed and empirically tested a contingency theoretical framework that examines the effects of formal and informal institutional distances on the quality of the headquarters–subsidiary relationship, and how such effects are contextualized by intern...

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Main Authors: Li, Forest, Jiang, Fuming
Format: Conference Paper
Published: 2016
Online Access:http://hdl.handle.net/20.500.11937/39362
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author Li, Forest
Jiang, Fuming
author_facet Li, Forest
Jiang, Fuming
author_sort Li, Forest
building Curtin Institutional Repository
collection Online Access
description Through the lens of the institutional theory, we developed and empirically tested a contingency theoretical framework that examines the effects of formal and informal institutional distances on the quality of the headquarters–subsidiary relationship, and how such effects are contextualized by internal institutionalization of headquarters’ practices in subsidiaries of Chinese multinational enterprises (MNEs). Data were collected from both the headquarters of 297 Chinese MNEs and their respective subsidiaries. The results show that regulative and cultural distances are positively associated with the quality of the headquarters–subsidiary relationship, and that these positive relationships are stronger when subsidiaries institutionalize headquarters’ practices to a higher degree. Theoretical and practical implications are highlighted in the paper.
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spelling curtin-20.500.11937-393622017-09-13T15:34:24Z Institutional Distance and Headquarters-Subsidiary Relationship Quality: The Moderating Role of Institutionalization of Headquarters’ Practices in Subsidiaries Li, Forest Jiang, Fuming Through the lens of the institutional theory, we developed and empirically tested a contingency theoretical framework that examines the effects of formal and informal institutional distances on the quality of the headquarters–subsidiary relationship, and how such effects are contextualized by internal institutionalization of headquarters’ practices in subsidiaries of Chinese multinational enterprises (MNEs). Data were collected from both the headquarters of 297 Chinese MNEs and their respective subsidiaries. The results show that regulative and cultural distances are positively associated with the quality of the headquarters–subsidiary relationship, and that these positive relationships are stronger when subsidiaries institutionalize headquarters’ practices to a higher degree. Theoretical and practical implications are highlighted in the paper. 2016 Conference Paper http://hdl.handle.net/20.500.11937/39362 10.1016/j.ibusrev.2015.09.009 restricted
spellingShingle Li, Forest
Jiang, Fuming
Institutional Distance and Headquarters-Subsidiary Relationship Quality: The Moderating Role of Institutionalization of Headquarters’ Practices in Subsidiaries
title Institutional Distance and Headquarters-Subsidiary Relationship Quality: The Moderating Role of Institutionalization of Headquarters’ Practices in Subsidiaries
title_full Institutional Distance and Headquarters-Subsidiary Relationship Quality: The Moderating Role of Institutionalization of Headquarters’ Practices in Subsidiaries
title_fullStr Institutional Distance and Headquarters-Subsidiary Relationship Quality: The Moderating Role of Institutionalization of Headquarters’ Practices in Subsidiaries
title_full_unstemmed Institutional Distance and Headquarters-Subsidiary Relationship Quality: The Moderating Role of Institutionalization of Headquarters’ Practices in Subsidiaries
title_short Institutional Distance and Headquarters-Subsidiary Relationship Quality: The Moderating Role of Institutionalization of Headquarters’ Practices in Subsidiaries
title_sort institutional distance and headquarters-subsidiary relationship quality: the moderating role of institutionalization of headquarters’ practices in subsidiaries
url http://hdl.handle.net/20.500.11937/39362