How do emerging multinational enterprises release subsidiary initiatives located in advanced economies?
We revisit the relationship between headquarters and subsidiaries under the context of emerging multinational enterprises (EMNEs) and develop a new model for releasing the subsidiary initiative, a significant form of corporate entrepreneurship activities hosted in advanced economies. Drawing upon...
| Main Authors: | , , |
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| Format: | Journal Article |
| Published: |
Elsevier
2021
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| Online Access: | http://hdl.handle.net/20.500.11937/82349 |
| Summary: | We revisit the relationship between headquarters and subsidiaries under the context of
emerging multinational enterprises (EMNEs) and develop a new model for releasing the
subsidiary initiative, a significant form of corporate entrepreneurship activities hosted in
advanced economies. Drawing upon institutional theory and corporate entrepreneurship
theory, we argue that mutual trust between headquarters and subsidiaries serves as a
mediating mechanism linking formal institutional distance and subsidiary initiatives.
Meanwhile, we propose that communication effectiveness between headquarter and
subsidiary plays as a moderator upon such relationships. Communication between the
headquarters and the subsidiary positively moderates the relationship from formal
institutional distance to trust. A sample including 232 EMNEs with headquarters in China
and subsidiaries in advanced economies largely support our model on subsidiary initiative.
Our model provides a solution to the global integration-local responsiveness paradox |
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