Global firms competing locally : management localization and subsidiary performance in China

Geng CUI, Tsang Sing CHAN, Shengsheng HUANG

Research output: Book Chapters | Papers in Conference ProceedingsConference paper (refereed)Researchpeer-review

Abstract

Drawing from the resource-based view, we propose that management localization serves as a mean to acquire local managerial resources for multinationals and that its effect on subsidiary performance depends on several key contextual variables. Based on a survey of foreign invested enterprises in China, we find that the degree of management localization alone does not improve subsidiary performance, while local resource dependency, headquarters support, and participation by local managers significantly moderate the effect of management localization on subsidiary performance. The findings have meaningful implications for human resource management at subsidiaries of multinationals in overseas markets.
Original languageEnglish
Title of host publicationFlexibility, innovation, and adding value as drivers of global competitiveness : private and public sector challenges : proceedings of the Twenty-second Annual World Business Congress, June 25-29, 2013, National Taipei University, Taipei, Taiwan.
PublisherInternational Management Development Association
Pages37-44
Number of pages8
Publication statusPublished - 1 Jan 2013

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Subsidiary performance
Localization
China
Multinationals
Subsidiaries
Participation
Resources
Human resource management
Headquarters
Managers
Foreign-invested enterprises
Resource dependency
Resource-based view

Bibliographical note

Paper presented at the 22nd Annual World Business Congress, Jun 25-29, 2013, National Taipei University, Taipei, Taiwan.
ISBN of the source publication: 9781888624120

Cite this

CUI, G., CHAN, T. S., & HUANG, S. (2013). Global firms competing locally : management localization and subsidiary performance in China. In Flexibility, innovation, and adding value as drivers of global competitiveness : private and public sector challenges : proceedings of the Twenty-second Annual World Business Congress, June 25-29, 2013, National Taipei University, Taipei, Taiwan. (pp. 37-44). International Management Development Association.
CUI, Geng ; CHAN, Tsang Sing ; HUANG, Shengsheng. / Global firms competing locally : management localization and subsidiary performance in China. Flexibility, innovation, and adding value as drivers of global competitiveness : private and public sector challenges : proceedings of the Twenty-second Annual World Business Congress, June 25-29, 2013, National Taipei University, Taipei, Taiwan.. International Management Development Association, 2013. pp. 37-44
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CUI, G, CHAN, TS & HUANG, S 2013, Global firms competing locally : management localization and subsidiary performance in China. in Flexibility, innovation, and adding value as drivers of global competitiveness : private and public sector challenges : proceedings of the Twenty-second Annual World Business Congress, June 25-29, 2013, National Taipei University, Taipei, Taiwan.. International Management Development Association, pp. 37-44.

Global firms competing locally : management localization and subsidiary performance in China. / CUI, Geng; CHAN, Tsang Sing; HUANG, Shengsheng.

Flexibility, innovation, and adding value as drivers of global competitiveness : private and public sector challenges : proceedings of the Twenty-second Annual World Business Congress, June 25-29, 2013, National Taipei University, Taipei, Taiwan.. International Management Development Association, 2013. p. 37-44.

Research output: Book Chapters | Papers in Conference ProceedingsConference paper (refereed)Researchpeer-review

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N2 - Drawing from the resource-based view, we propose that management localization serves as a mean to acquire local managerial resources for multinationals and that its effect on subsidiary performance depends on several key contextual variables. Based on a survey of foreign invested enterprises in China, we find that the degree of management localization alone does not improve subsidiary performance, while local resource dependency, headquarters support, and participation by local managers significantly moderate the effect of management localization on subsidiary performance. The findings have meaningful implications for human resource management at subsidiaries of multinationals in overseas markets.

AB - Drawing from the resource-based view, we propose that management localization serves as a mean to acquire local managerial resources for multinationals and that its effect on subsidiary performance depends on several key contextual variables. Based on a survey of foreign invested enterprises in China, we find that the degree of management localization alone does not improve subsidiary performance, while local resource dependency, headquarters support, and participation by local managers significantly moderate the effect of management localization on subsidiary performance. The findings have meaningful implications for human resource management at subsidiaries of multinationals in overseas markets.

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CUI G, CHAN TS, HUANG S. Global firms competing locally : management localization and subsidiary performance in China. In Flexibility, innovation, and adding value as drivers of global competitiveness : private and public sector challenges : proceedings of the Twenty-second Annual World Business Congress, June 25-29, 2013, National Taipei University, Taipei, Taiwan.. International Management Development Association. 2013. p. 37-44