IDEAS home Printed from https://ideas.repec.org/p/mtk/febawb/38.html
   My bibliography  Save this paper

Autonomy And Performance Of Foreign Subsidiaries In Transition Countries

Author

Listed:
  • Urmas Varblane
  • Katrin Männik
  • Helena Hannula

Abstract

The paper analyses the link between the autonomy according to business function and the performance of foreign subsidiaries in Slovenia, Poland, Hungary, Slovakia and Estonia. The obtained results supported the argument that the relationship between autonomy and performance depends on the type of autonomy. Marketing and finance are the most powerful dimensions of autonomy. Higher autonomy in marketing is negatively linked with technology upgrading, measured by the productivity level, the improvement of technological level of production equipment, and the quality of products. The higher the financial autonomy of the subsidiaries the bigger the positive changes in all fields of performance.

Suggested Citation

  • 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).
  • Handle: RePEc:mtk:febawb:38
    as

    Download full text from publisher

    File URL: http://www.mtk.ut.ee/sites/default/files/mtk/RePEc/mtk/febpdf/febawb38.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Ron Edwards & Adlina Ahmad & Simon Moss, 2002. "Subsidiary Autonomy: The Case of Multinational Subsidiaries in Malaysia," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(1), pages 183-191, March.
    2. Julian Birkinshaw, 1996. "How Multinational Subsidiary Mandates are Gained and Lost," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(3), pages 467-495, September.
    3. Majcen, Boris & Radosevic, Slavo & Rojec, Matija, 2003. "FDI Subsidiaries and Industrial Integration of Central Europe: Conceptual and Empirical Results," IWH Discussion Papers 177, Halle Institute for Economic Research (IWH).
    4. Andersson, Ulf & Forsgren, Mats & Pedersen, Torben, 2001. "Subsidiary performance in multinational corporations: the importance of technology embeddedness," International Business Review, Elsevier, vol. 10(1), pages 3-23, February.
    5. 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.
    6. Taggart, James & Hood, Neil, 1999. "Determinants of autonomy in multinational corporation subsidiaries," European Management Journal, Elsevier, vol. 17(2), pages 226-236, April.
    7. 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.
    8. Jon I Martinez & J Carlos Jarillo, 1991. "Coordination Demands of International Strategies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 22(3), pages 429-444, September.
    9. Andersson, Ulf & Forsgren, Mats, 1996. "Subsidiary embeddedness and control in the multinational corporation," International Business Review, Elsevier, vol. 5(5), pages 487-508, October.
    10. 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).
    11. Julian Birkinshaw & Neil Hood, 2000. "Characteristics of Foreign Subsidiaries in Industry Clusters," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 31(1), pages 141-154, March.
    12. K Hewett & M S Roth & K Roth, 2003. "Conditions influencing headquarters and foreign subsidiary roles in marketing activities and their effects on performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(6), pages 567-585, November.
    13. repec:ilo:ilowps:239505 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:mtk:febawb:38. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anne Reino). General contact details of provider: http://edirc.repec.org/data/febutee.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.