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.
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Yu‐Ching Chiao, Fang‐Yi Lo and Chow‐Ming Yu
The purpose of this paper is to examine the impact that three sets of variables – derived from transaction cost theory (TCT), the resource‐based view (RBV), and institutional…
Abstract
Purpose
The purpose of this paper is to examine the impact that three sets of variables – derived from transaction cost theory (TCT), the resource‐based view (RBV), and institutional environment – have on choice of entry strategies of multinational corporations (MNCs) from an emerging market.
Design/methodology/approach
The sample consisted of 819 Taiwanese firms which were investigated using a national survey, and logistic regression analysis was used for testing the hypotheses.
Findings
The empirical findings confirm that the following factors affect this decision: firm‐specific assets, international experience, whether a firm is investing abroad in pursuit of a particular customer, whether a firm seeks complementary assets abroad, and the perceived institutional differences (PEDs) between a firm's home country and the host country. The findings also suggest that PEDs have a moderating effect on foreign market entry.
Research limitations/implications
As MNCs from emerging markets make the decision of entry mode strategies, they must carefully consider not only the related variables in terms of TCT and the RBV, but also the influence of institutional factors in host countries.
Originality/value
This paper explores the modes of entry chosen by Taiwanese firms investing in China on the basis of TCT, institutional environment, and the RBV.
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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.
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Discusses the theory of front‐ and back‐seat driving relative tocustomer‐driven enterprise in marketing. With deregulation andprivatization picking up speed in service industries…
Abstract
Discusses the theory of front‐ and back‐seat driving relative to customer‐driven enterprise in marketing. With deregulation and privatization picking up speed in service industries, customer service roles are vitally important. Shows that marketing must embrace new technologies alongside customer choice and marketing ideology with intelligence. Also posits requisite planning as a positive approach as involving customers in learning how to drive themselves. Describes the author′s early involvement in requisite planning at Bowater Packaging in which transformed production technology and localized competition were involved along with corporate renewal. Describes the theory behind CUSTOMDRIVE 5 and includes a model with six steps. Concludes that, if CUSTOMDRIVE 5 is understood and implemented, then marketing professionals will soon take on board the relevant message.