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Institutional and resource-based explanations for subsidiary performance

Hughes, Mathew, Powell, Taman H., Chung, Leanne and Mellahi, Kamel 2017. Institutional and resource-based explanations for subsidiary performance. British Journal of Management 28 (3) , pp. 407-424. 10.1111/1467-8551.12169

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Abstract

Addressing calls to integrate insights from institutional theory and the resource-based view, we bring together dual theoretical explanations from institutional theory and the resource-based view to examine the effectiveness of transfer of practice and human capital development as two routes to subsidiary performance. Our study of Hong Kong firms with subsidiaries in Mainland China shows that both routes positively affect subsidiary performance. However, our data show that our sampled firms struggled to successfully transfer practices from their parents. We attribute an explanation for this to the characteristics of practices as organizational capabilities in which transfer is made harder by the difficulty in replicating such capabilities. Consequently, developing subsidiary human capital is an important ally to practice transfer as a means to achieve superior subsidiary performance. Our results raise interesting questions about practice transfer and the resource-based view relevant to future scholarly research.

Item Type: Article
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Subjects: H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Additional Information: Pdf uploaded in accordance with publisher's policy at http://www.sherpa.ac.uk/romeo/issn/1045-3172/ (accessed 22/06/2016)
Publisher: Wiley
ISSN: 1045-3172
Date of First Compliant Deposit: 30 March 2016
Date of Acceptance: 4 March 2016
Last Modified: 26 Nov 2020 19:19
URI: http://orca.cf.ac.uk/id/eprint/87954

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