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Institutional development and subsidiary decision making autonomy: theory and evidence from Taiwan

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  • Sven Dahms

Abstract

This article investigates the effects of differing institutional contexts in which multinationals operate and their impact on decision making autonomy of subsidiaries located in an emerging economy. The research builds on a unique dataset of all known foreign-owned subsidiaries in Taiwan. Our results indicate that differences in formal institutional development and informal institutions are positively associated with overall decision making autonomy in foreign-owned subsidiaries. Factor markets and infrastructure, on the other hand seem to play a lesser role.

Suggested Citation

  • Sven Dahms, 2017. "Institutional development and subsidiary decision making autonomy: theory and evidence from Taiwan," International Journal of Business and Emerging Markets, Inderscience Enterprises Ltd, vol. 9(2), pages 124-147.
    • Handle: RePEc:ids:ijbema:v:9:y:2017:i:2:p:124-147
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    Cited by:

    1. Dahms, Sven, 2019. "Foreign-owned subsidiary knowledge sourcing: The role of location and expatriates," Journal of Business Research, Elsevier, vol. 105(C), pages 178-188.

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