Yu‐Ching Chiao, Chow‐Ming Joseph Yu, Peng‐Yu Li and Yi‐Chuan Chen
This study aims to explore subsidiaries' diversification strategies, both internationally and with regard to their product offerings. The study seeks to examine, at the subsidiary…
Abstract
Purpose
This study aims to explore subsidiaries' diversification strategies, both internationally and with regard to their product offerings. The study seeks to examine, at the subsidiary level, the relationships between subsidiary size, internationalization, production diversification, and performance.
Design/methodology/approach
Based on the archival data of an officially conducted survey, the study used ordered logit regression analysis to test its hypotheses using data from 920 Taiwanese subsidiaries in China.
Findings
The study's results revealed: larger subsidiaries tend to engage in internationalization and product diversification activities to a greater degree, and, as a result, tend to exhibit superior performance; and subsidiaries that pursue outward internationalization and that reinvest in related businesses enjoy enhanced performance.
Research limitations/implications
This study examines Taiwanese firms that have one foreign subsidiary in China. Future research should examine larger firms with numerous foreign subsidiaries in developed countries, and should employ more fine‐grained measurements of subsidiary size to provide a clearer picture of subsidiary‐specific advantages.
Originality/value
Unlike the existing literature, which has tended to take the perspective of the multinational corporation, this study examines internationalization and product diversification at the subsidiary level. By extending the resource‐based view to the subsidiary level, larger subsidiaries might be able to exploit their advantages so as to more successfully implement international and product diversification strategies and improve their performance in a host country.
Details
Keywords
Tzu‐Ju Ann Peng, Nan‐Juh Lin, Veronica Martinez and Chow‐Ming Joseph Yu
The purpose of this paper is to investigate how different types of triad structures, and the management mechanisms adopted by the focal company, affect cooperative performance.
Abstract
Purpose
The purpose of this paper is to investigate how different types of triad structures, and the management mechanisms adopted by the focal company, affect cooperative performance.
Design/methodology/approach
This paper uses a social network perspective to examine the triad management phenomenon in the military avionics maintenance context, which is closely associated with the field of operations management.
Findings
This paper demonstrates that different triad structures and management mechanisms influence perceived cooperative performance. Four main findings emerged: in a triad, a firm playing a bridging role perceives higher cooperative performance than when playing a peripheral role in the triad or being located in a fully connected triad. When a firm plays the bridging role in a triad, and has a high level of trust, this leads to higher perceived cooperative performance. When a firm plays a peripheral role in a triad, high levels of coordination mechanism combined with high levels of trust result in higher levels of perceived cooperative performance. In a fully linked triad, when the coordination mechanism is well developed, the level of trust is high, so that the resulting level of perceived cooperation is high.
Originality/value
This paper extends the knowledge of triad management by providing an in‐depth study of a well‐defined network setting with exceptionally high‐level access to the most senior executives. In practice, this paper shows how to manage different triads.