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The effects of institutions and subsidiary competence on the international market orientation in foreign-owned subsidiaries

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  • Sven Dahms

Abstract

Purpose - – The purpose of this paper is to enhance our understanding on the effects of national and subnational institutions as well as subsidiary competences on the international market orientation in foreign-owned subsidiaries. Design/methodology/approach - – A postal survey has been conducted based on a census-like database of foreign-owned subsidiaries in the Northwest of England. Findings - – The findings show a positive relationship on the international market orientation for subsidiaries with extended competences and strong links to local suppliers, universities and competitors. A negative association has been found concerning formal institutional distance and strong links to local customers and government institutions. Research limitations/implications - – The survey is limited to foreign-owned subsidiaries in the Northwest of England. Practical implications - – This study implies that subsidiary managers need to take national and subnational institutions as well as subsidiary specific competences into consideration when looking for international market expansion. Originality/value - – The originality of this paper lies in the detailed investigation of institutions at the national and subnational level as well as subsidiary competences on the international market orientation in foreign-owned subsidiaries.

Suggested Citation

  • Sven Dahms, 2015. "The effects of institutions and subsidiary competence on the international market orientation in foreign-owned subsidiaries," Management Research Review, Emerald Group Publishing Limited, vol. 38(12), pages 1285-1305, December.
    • Handle: RePEc:eme:mrrpps:v:38:y:2015:i:12:p:1285-1305
    DOI: 10.1108/MRR-06-2014-0142
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    Cited by:

    1. Chung, Hsi-Mei & Dahms, Sven, 2018. "Ownership Strategy and Foreign Affiliate Performance in Multinational Family Business Groups: A Double-edged Sword," Journal of International Management, Elsevier, vol. 24(4), pages 303-316.

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