Autonomy, Embeddedness, and the Performance of Foreign Owned Subsidiaries

Frank McDonald; Svetlana Warhurst; Matthew Allen

doi:10.1108/1525383X200800014

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Multinational Business Review

ISSN: 1525-383X

Online from: 2003

Subject Area: International Business

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Autonomy, Embeddedness, and the Performance of Foreign Owned Subsidiaries

Document Information:
Title:	Autonomy, Embeddedness, and the Performance of Foreign Owned Subsidiaries
Author(s):	Frank McDonald, (Professor of international business at Bradford University School of Management and Director of the Bradford Centre in International Business), Svetlana Warhurst, (Lecturer of international business and entrepreneurship in the School of Entrepreneurship and Business at the University of Essex), Matthew Allen, (Lecturer in organization studies at Manchester Business School, the University of Manchester)
Citation:	Frank McDonald, Svetlana Warhurst, Matthew Allen, (2008) "Autonomy, Embeddedness, and the Performance of Foreign Owned Subsidiaries", Multinational Business Review, Vol. 16 Iss: 3, pp.73 - 92
Keywords:	Autonomy, Decision-making, Embeddedness, Foreign owned subsidiaries, Performance
Article type:	General review
DOI:	10.1108/1525383X200800014 (Permanent URL)
Publisher:	Emerald Group Publishing Limited
Abstract:	This paper investigates whether changes in autonomy and embeddedness in host locations by foreign owned subsidiaries are associated with improvements in performance by subsidiaries. The results provide evidence that increasing operational decision-making autonomy is associated with enhanced performance as measured by both subjective and more objective measures of performance. The results on the importance of increasing strategic decision-making autonomy and embeddedness are less clear, with improved performance being detected in some cases, but only for the subjective measure of performance.