Autonomy, Embeddedness and the Performance of Foreign-Owned Subsidiaries

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  • F. McDonald
  • S. Warhurst
  • M M.C. Allen
    University of Manchester
This paper investigates whether changes in autonomy and embeddedness in host locations by foreign owned subsidiaries are associated with improvements in performance by subsidiaries. The results provide evidence that increasing operational decision-making autonomy is associated with enlianced performance as measured by both subjective and more objective measures of performance. The results on the importance of increasing strategic decision-making autonomy and embeddedness are less clear, with improved performance being detected in some cases, but only for the subjective measure of performance.
Original languageEnglish
Pages (from-to)73-92
Number of pages20
JournalMultinational Business Review
Volume16
Issue number3
DOIs
Publication statusPublished - 2008
Externally publishedYes
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