Electronic Theses and Dissertations

Date

2019

Document Type

Dissertation

Degree Name

Doctor of Philosophy

Department

Business Administration

Committee Chair

Frances Fabian

Committee Member

Robert Wiggins

Committee Member

Michael Nalick

Committee Member

Seung-Hyun Lee

Abstract

Ownership control through equity ownership-based entry mode strategies of multinational corporations (MNCs) and their foreign subsidiary performance have received increased attention from scholars over the past decades. However, previous research has reported mixed findings on subsidiary performance outcomes. This research, therefore, addresses some of these findings by combining ownership control and operational control via staffing parent country nationals to consider performance. Specifically, I investigated the moderating effects of the high-tech industry and cultural distance on this relationship. Using an unbalanced panel sample of 3,071 Korean MNCs foreign subsidiaries (11,281 subsidiary-year observations across 49 countries from 2007 to 2013), I found lower levels of operational control perform better than higher operational control in all conditions, when controlling for cultural distance. High cultural distance between home and destination country lowers overall subsidiary performance. When a subsidiary is in a low cultural distance host country, high operational control will be more effective in wholly owned subsidiaries than in joint ventures; though, for both cases, lower operational control will still outperform high operational control. However, no evidence indicated that there is a performance difference in operational control and its moderators for greenfield versus acquisition modes. Based on these findings, I provide implications and suggest ideas for future research.

Comments

Data is provided by the student.

Library Comment

Dissertation or thesis originally submitted to ProQuest

Download

Share

COinS