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Parent-subsidiary linkage: How resource commitment and resource similarity influence firm performance

Author

Listed:
  • Chung-Jen Chen

    (National Taiwan University)

  • Ya-Hui Lin

    (Ming Chuan University)

  • Shan-Huei Wang

    (Tunghai University)

  • Ruey-Shan Guo

    (National Taiwan University)

Abstract

Drawing on the resource-based view, this study examines how parent-subsidiary resource linkages in terms of resource commitment and resource similarity affect the performance of the parent firm. By using the data from 199 Taiwanese firms investing in China, the results of this study show that resource commitment has an inverted U-shaped relationship with the parent firm performance, whereas the relationship between resource similarity and the parent firm performance is U-shaped. In addition, this study also finds that organizational slack and parent involvement moderate these relationships. This study provides important theoretical and managerial implications for international business management.

Suggested Citation

  • Chung-Jen Chen & Ya-Hui Lin & Shan-Huei Wang & Ruey-Shan Guo, 2022. "Parent-subsidiary linkage: How resource commitment and resource similarity influence firm performance," Asia Pacific Journal of Management, Springer, vol. 39(2), pages 615-658, June.
    • Handle: RePEc:kap:asiapa:v:39:y:2022:i:2:d:10.1007_s10490-020-09741-x
    DOI: 10.1007/s10490-020-09741-x
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