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Similarity to successful peers and the implications for subsidiary performance

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  • Naoki Ando

    (Hosei University)

Abstract

This study explores whether the performance of a lower-performing subsidiary improves when it is staffed in a similar manner to high-performing subsidiaries. Using a panel data set comprising 11 266 observations of foreign subsidiaries of Japanese firms, it is found that in subsidiaries with strategic importance, staff deployment similar to that of high-performing peers has a positive impact on the subsidiary’s performance. This study also demonstrates that when institutional distance between the host and home countries is large, staff deployment similar to that of high-performing peers has a negative impact on performance.

Suggested Citation

  • Naoki Ando, 2016. "Similarity to successful peers and the implications for subsidiary performance," Asian Business & Management, Palgrave Macmillan, vol. 15(2), pages 110-136, April.
    • Handle: RePEc:pal:abaman:v:15:y:2016:i:2:d:10.1057_abm.2015.18
    DOI: 10.1057/abm.2015.18
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    2. Olejniczak Tomasz & Itohisa Masato & Abo Tetsuo & Kumon Hiroshi, 2018. "Measuring Change in ‘Hybrid Factories’: Longitudinal Study of Japanese Manufacturing Subsidiaries in Poland," Journal of Intercultural Management, Sciendo, vol. 10(4), pages 109-145, December.

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