IDEAS home Printed from https://ideas.repec.org/a/sae/envira/v32y2000i2p201-222.html
   My bibliography  Save this article

Embedding Foreign Affiliates in Transnational Business Networks: The Case of Hong Kong Firms in Southeast Asia

Author

Listed:
  • Henry Wai-Chung Yeung

    (Department of Geography, National University of Singapore, 1 Arts Link, Singapore 117570)

Abstract

The author aims to examine the nature and organisation of transnational business networks. From an empirical study of some 111 parent Hong Kong transnational corporations (TNCs) and 63 of their foreign affiliates in Southeast Asia, he argues that the role and functions of TNC affiliates are critically dependent on their embeddedness in transnational business networks. These transnational business networks can be organised either within TNCs (intrafirm) or with local firms (interfirm). This network embeddedness of TNC affiliates is socially organised and can be strategically deployed to facilitate the extension of network associations through time and space. Two detailed case studies of business networks of Hong Kong TNCs (HKTNCs) in Southeast Asia present several interesting illustrations. First, the strategic strength and spatial reach of intrafirm networks determine the competitive advantage of Hong Kong TNCs in the regional economy. Better integration and regional coverage are the winning strategies of Hong Kong firms in Southeast Asia. Second, the embeddedness of foreign affiliates in the business networks of HKTNCs are socially constructed. Personal relationships and business association among leading actors in HKTNC networks provide the underlying organising principles of such network formation. Third, the functions and contributions of local Southeast Asian affiliates to overall group performance are related to their access to local business and other forms of interfirm networks. Local affiliates with strong networking capabilities tend to receive more support and coordination from parent TNCs. In the concluding section the author offers some implications for recent developments in network theory in economic geography and geographies of Chinese business networks in Asia.

Suggested Citation

  • Henry Wai-Chung Yeung, 2000. "Embedding Foreign Affiliates in Transnational Business Networks: The Case of Hong Kong Firms in Southeast Asia," Environment and Planning A, , vol. 32(2), pages 201-222, February.
    • Handle: RePEc:sae:envira:v:32:y:2000:i:2:p:201-222
    DOI: 10.1068/a31173
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1068/a31173
    Download Restriction: no
    File URL: https://libkey.io/10.1068/a31173?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Marschan, Rebecca & Welch, Denise & Welch, Lawrence, 1996. "Control in less-hierarchical multinationals: The role of personal networks and informal communication," International Business Review, Elsevier, vol. 5(2), pages 137-150, April.
    2. Kendall Roth & Allen J Morrison, 1992. "Implementing Global Strategy: Characteristics of Global Subsidiary Mandates," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 23(4), pages 715-735, December.
    3. Mike Hobday, 1998. "Latecomer catch-up strategies in electronics: Samsung of Korea and ACER of Taiwan," Asia Pacific Business Review, Taylor & Francis Journals, vol. 4(2-3), pages 48-83, June.
    4. Michael Hobday, 1995. "Innovation In East Asia," Books, Edward Elgar Publishing, number 226.
    5. Louise Crewe, 1996. "Material Culture: Embedded Firms, Organizational Networks and the Local Economic Development of a Fashion Quarter," Regional Studies, Taylor & Francis Journals, vol. 30(3), pages 257-272.
    6. Alfred M Jaeger, 1983. "The Transfer of Organizational Culture Overseas: An Approach to Control in the Multinational Corporation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 14(2), pages 91-113, June.
    7. Lai Si Tsui-Auch, 1999. "Regional Production Relationships and Developmental Impacts: A Comparative Study of Three Production Networks," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 23(2), pages 345-360, June.
    8. Gunnar Hedlund, 1993. "Assumptions of Hierarchy and Heterarchy, with Applications to the Management of the Multinational Corporation," Palgrave Macmillan Books, in: Sumantra Ghoshal & D. Eleanor Westney (ed.), Organization Theory and the Multinational Corporation, chapter 9, pages 211-236, Palgrave Macmillan.
    9. Julian M Birkinshaw & Allen J Morrison, 1995. "Configurations of Strategy and Structure in Subsidiaries of Multinational Structure," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 26(4), pages 729-753, December.
    10. James H Taggart, 1997. "Autonomy and Procedural Justice: A Framework for Evaluating Subsidiary Strategy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 28(1), pages 51-76, March.
    11. Julius H Johnson, 1995. "An Empirical Analysis of the Integration-Responsiveness Framework: U.S. Construction Equipment Industry Firms in Global Competition," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 26(3), pages 621-635, September.
    12. Gordon Clark, 1997. "Rogues and Regulation in Global Finance: Maxwell, Leeson and the City of London," Regional Studies, Taylor & Francis Journals, vol. 31(3), pages 221-236.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kirsten Simonsen, 2004. "Networks, Flows, and Fluids—Reimagining Spatial Analysis?," Environment and Planning A, , vol. 36(8), pages 1333-1337, August.
    2. Aksel Ersoy, 2016. "Impact of Accessibility and Knowledge Creation on Local and Regional Development in Turkey," Growth and Change, Wiley Blackwell, vol. 47(4), pages 648-663, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Henry Wai-chung Yeung & Jessie Poon & Martin Perry, 2001. "Towards a Regional Strategy: The Role of Regional Headquarters of Foreign Firms in Singapore," Urban Studies, Urban Studies Journal Limited, vol. 38(1), pages 157-183, January.
    2. Pearce, Robert & Papanastassiou, Marina, 2006. "To 'almost see the world': Hierarchy and strategy in Hymer's view of the multinational," International Business Review, Elsevier, vol. 15(2), pages 151-165, April.
    3. Robert Pearce, 2001. "Multinationals and Industrialisation: The Bases of 'Inward Investment' Policy," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 8(1), pages 51-73.
    4. Taggart, J. H., 1999. "MNC subsidiary performance, risk, and corporate expectations," International Business Review, Elsevier, vol. 8(2), pages 233-255, April.
    5. Michael J. Enright & Venkat Subramanian, 2007. "An organizing framework for MNC subsidiary typologies," Management International Review, Springer, vol. 47(6), pages 895-924, December.
    6. Urmas Varblane & Katrin M??nnik & Helena Hannula, 2005. "Autonomy and Performance of Foreign Subsidiaries in five Transition Countries," William Davidson Institute Working Papers Series wp780, William Davidson Institute at the University of Michigan.
    7. Pisoni, Alessia & Fratocchi, Luciano & Onetti, Alberto, 2013. "Subsidiary autonomy in transition economies: Italian SMEs in Central and Eastern European countries," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 18(3), pages 336-370.
    8. Katrin Männik & Helena Hannula & Urmas Varblane, 2004. "Country, Industry And Firm Size Effects On Foreign Subsidiary Strategy.An Example Of Five Cee Countries," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 27, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    9. Julia Manea & Robert Pearce, 2006. "MNEs’ strategies in Central and Eastern Europe: key elements of subsidiary behaviour," Management International Review, Springer, vol. 46(2), pages 235-255, March.
    10. Wolf, Joachim, 2002. "Strategic orientation and coordination of human resource management in multinational corporations: An information-processing and gestalt analysis," Manuskripte aus den Instituten für Betriebswirtschaftslehre der Universität Kiel 553, Christian-Albrechts-Universität zu Kiel, Institut für Betriebswirtschaftslehre.
    11. Urmas Varblane & Katrin Männik & Helena Hannula, 2005. "Autonomy And Performance Of Foreign Subsidiaries In Transition Countries," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 38, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    12. Lin, Shao-Lung & Hsieh, An-Tien, 2010. "The integration-responsiveness framework and subsidiary management: A response," Journal of Business Research, Elsevier, vol. 63(8), pages 911-913, August.
    13. Robert Pearce, 2009. "Multinationals’ Strategies and the Economic Development of Small Economies: A Tale of Two Transitions," Management International Review, Springer, vol. 49(1), pages 81-94, February.
    14. Xufei Ma & Andrew Delios & Shu Yu, 2020. "Innovation in MNC’S strategy and structure: the (re) emergence of host country headquarters in large emerging markets," Asia Pacific Journal of Management, Springer, vol. 37(3), pages 609-632, September.
    15. Pearce, Robert, 1999. "The evolution of technology in multinational enterprises: the role of creative subsidiaries," International Business Review, Elsevier, vol. 8(2), pages 125-148, April.
    16. Filip De Beule, 2011. "Localization, Globalization and Networks of foreign Subsidiaries," Working Papers id:4500, eSocialSciences.
    17. Hogenbirk, Annelies.E. & van Kranenburg, Hans.L., 2006. "Roles of foreign owned subsidiaries in a small economy," International Business Review, Elsevier, vol. 15(1), pages 53-67, February.
    18. 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.
    19. Harzing, Anne-Wil & Noorderhaven, Niels, 2006. "Knowledge flows in MNCs: An empirical test and extension of Gupta and Govindarajan's typology of subsidiary roles," International Business Review, Elsevier, vol. 15(3), pages 195-214, June.
    20. Paterson, S. L. & Brock, D. M., 2002. "The development of subsidiary-management research: review and theoretical analysis," International Business Review, Elsevier, vol. 11(2), pages 139-163, April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:envira:v:32:y:2000:i:2:p:201-222. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.