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International strategy implementation: Roles of subsidiaries, operational capabilities, and procedural justice

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  • Lin, Shao-Lung
  • Hsieh, An-Tien

Abstract

This study develops a framework to propose how the differentiation of operational capabilities (coordination and configuration) and procedural justice fits to different subsidiary roles, and the relationship between the fit and the subsidiary performance. The findings are based on a survey of sixty-two foreign subsidiaries in Taiwan. The results indicate that (1) the operational capabilities and procedural justice of the top-performing subsidiaries can be differentiated according to their distinct strategic roles, and the differentiation exhibits an ideal profile for each role as shown in Fig. 2; (2) the extent to which a subsidiary fits the ideal profile associated with its role is positively related to the subsidiary's performance. The authors discuss the theoretical and managerial implications and provide some suggestions for the future study.

Suggested Citation

  • Lin, Shao-Lung & Hsieh, An-Tien, 2010. "International strategy implementation: Roles of subsidiaries, operational capabilities, and procedural justice," Journal of Business Research, Elsevier, vol. 63(1), pages 52-59, January.
    • Handle: RePEc:eee:jbrese:v:63:y:2010:i:1:p:52-59
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    3. Głodowska Agnieszka & Pera Bożena & Wach Krzysztof, 2019. "International Strategy as the Facilitator of the Speed, Scope, and Scale of Firms’ Internationalization," Journal of Management and Business Administration. Central Europe, Sciendo, vol. 27(3), pages 55-84, September.
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    5. Geovana Alves de Lima Fedato & Vanessa Martins Pires & Guilherme Trez, 2017. "The Future of Research in Strategy Implementation in the BRICS Context," Brazilian Business Review, Fucape Business School, vol. 14(3), pages 288-303, May.
    6. Karkoulian, Silva & Assaker, Guy & Hallak, Rob, 2016. "An empirical study of 360-degree feedback, organizational justice, and firm sustainability," Journal of Business Research, Elsevier, vol. 69(5), pages 1862-1867.
    7. Grøgaard, Birgitte, 2012. "Alignment of strategy and structure in international firms: An empirical examination," International Business Review, Elsevier, vol. 21(3), pages 397-407.
    8. Qu, Riliang & Zhang, Zelin, 2015. "Market orientation and business performance in MNC foreign subsidiaries— Moderating effects of integration and responsiveness," Journal of Business Research, Elsevier, vol. 68(5), pages 919-924.
    9. Zeng, Rong & Grøgaard, Birgitte & Steel, Piers, 2018. "Complements or substitutes? A meta-analysis of the role of integration mechanisms for knowledge transfer in the MNE network," Journal of World Business, Elsevier, vol. 53(4), pages 415-432.
    10. Swoboda, Bernhard & Morbe, Lukas & Hirschmann, Johannes, 2018. "International strategy’s effects on retailers’ local implementation and performance," International Business Review, Elsevier, vol. 27(3), pages 642-653.
    11. Manuel Hensmans & Guangyan Liu, 2016. "How do the normativity of headquarters and the knowledge autonomy of subsidiaries co-evolve?," Working Papers TIMES² 2016-020, ULB -- Universite Libre de Bruxelles.
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    13. Williams, Christopher & Colovic, Ana & Zhu, Jiqing, 2017. "Integration-responsiveness, local hires and subsidiary performance amidst turbulence: Insights from a survey of Chinese subsidiaries," Journal of World Business, Elsevier, vol. 52(6), pages 842-853.

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