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Integration and responsiveness in subsidiaries in emerging economies

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  • Meyer, Klaus E.
  • Su, Yu-Shan

Abstract

The integration-responsiveness (IR) framework with the typology of international, multi-domestic, global and transnational MNE strategies has become a standard in international management textbooks. In particular, the ‘transnational strategy’ is advocated by some gurus, but considered unworkable by other scholars. Yet, despite the popularity of the framework, and the concept of ‘transnational strategy’ in particular, surprisingly little evidence exists for under which conditions this strategy is most appropriate. This paper revisits the typology using a contingency approach suggesting that the transnational strategy works well if it “fits” with other elements of a subsidiary's strategy. We test hypotheses derived from this perspective on a sample of subsidiaries in two emerging economies. We find that transnational strategy enhances subsidiary performance in particular if the subsidiary is wholly owned, if it was not established by acquisition, and if it is highly export oriented.

Suggested Citation

  • Meyer, Klaus E. & Su, Yu-Shan, 2015. "Integration and responsiveness in subsidiaries in emerging economies," Journal of World Business, Elsevier, vol. 50(1), pages 149-158.
  • Handle: RePEc:eee:worbus:v:50:y:2015:i:1:p:149-158
    DOI: 10.1016/j.jwb.2014.04.001
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    References listed on IDEAS

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    Cited by:

    1. Yadong Luo & Huan Zhang & Juan Bu, 2019. "Developed country MNEs investing in developing economies: Progress and prospect," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(4), pages 633-667, June.
    2. Sarabi, Almasa & Froese, Fabian J. & Chng, Daniel H.M. & Meyer, Klaus E., 2020. "Entrepreneurial leadership and MNE subsidiary performance: The moderating role of subsidiary context," International Business Review, Elsevier, vol. 29(3).
    3. Lili Mi & Xiao-Guang Yue & Xue-Feng Shao & Yuanfei Kang & Yulong Liu, 2020. "Strategic Asset Seeking and Innovation Performance: The Role of Innovation Capabilities and Host Country Institutions," Journal of Risk and Financial Management, MDPI, Open Access Journal, vol. 13(3), pages 1-22, March.
    4. Kawai, Norifumi & Chung, Chul, 2019. "Expatriate utilization, subsidiary knowledge creation and performance: The moderating role of subsidiary strategic context," Journal of World Business, Elsevier, vol. 54(1), pages 24-36.
    5. Jaklič, Andreja & Obloj, Krzysztof & Svetličič, Marjan & Kronegger, Luka, 2020. "Evolution of Central and Eastern Europe related international business research," Journal of Business Research, Elsevier, vol. 108(C), pages 421-434.
    6. 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.
    7. Banerjee, Shantanu & Venaik, Sunil & Brewer, Paul, 2019. "Analysing corporate political activity in MNC subsidiaries through the integration-responsiveness framework," International Business Review, Elsevier, vol. 28(5), pages 1-1.
    8. Michael A. Sartor & Paul W. Beamish, 2020. "Integration-oriented strategies, host market corruption and the likelihood of foreign subsidiary exit from emerging markets," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(3), pages 414-431, April.
    9. 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.
    10. Birgitte Grøgaard & Helene Loe Colman & Inger G Stensaker, 0. "Legitimizing, leveraging, and launching: Developing dynamic capabilities in the MNE," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-21.
    11. 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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