The Relationship Between Strategic Roles and Performance: the Case of Multinational Corporations' Subsidiaries in Malaysia
The general purpose of the study is to investigate the roles and strategic styles of multinational corporations' subsidiaries in Malaysia. Specifically, the study aims to explore the strategic roles of multinational subsidiaries with regards to local responsiveness and integration of activit...
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| Format: | Thesis |
| Language: | English English |
| Published: |
2003
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| Subjects: | |
| Online Access: | http://psasir.upm.edu.my/id/eprint/8174/1/GSM%20200.pdf |
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| Summary: | The general purpose of the study is to investigate the roles and strategic styles of
multinational corporations' subsidiaries in Malaysia. Specifically, the study aims to
explore the strategic roles of multinational subsidiaries with regards to local
responsiveness and integration of activities, and the level of technological capability.
The strategic roles are further related to subsidiaries' performance. In addition, the
study also looks at the relationship between the dimensions of the strategic roles of
multinational subsidiaries and performance, and with the business environment as the
moderating variable.
The methodology of the data collection is by a set of questionnaires sent out to
multinational subsidiaries currently operating in Malaysia. Seventy-one (71)
multinational corporations' subsidiaries participated in this study. Statistical analyses
used for the study included cluster analysis, analysis of variance (ANOVA) and
multiple regression.Data analyses revealed that there are five strategic roles of multinational subsidiaries
with regards to local responsiveness of activities, integration of activities and
technological capability. Industry characteristics, nationalities, age and foreign
ownership stake of subsidiaries are found to be dependent on the strategic roles of
subsidiaries. Subsidiary performance is found to be the same across strategic styles.
The three dimensions of strategic roles, namely local responsiveness of activities,
integration of activities and technological capability are found not to be related to
performance but business environment does appear to act as a moderating variable
between the three dimensions and performance.
Results of the study present practical implications to policy makers, head office and
subsidiary managers and local business players. The study also contributes to the
body of knowledge in multinational subsidiaries participating in developing nations
and in the area of international strategic management. |
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