Protectionism and its Impact on MNC Subsidiaries’ Performance
This study investigates the relationship between local protectionism and performance of multinational corporation (MNC) subsidiaries in China. We integrate overarching theories (i.e., institutional theory and extended resource-based view) to investigate a model for identifying whether local protecti...
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Veröffentlicht in: | Management international review 2023-10, Vol.63 (5), p.731-757 |
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description | This study investigates the relationship between local protectionism and performance of multinational corporation (MNC) subsidiaries in China. We integrate overarching theories (i.e., institutional theory and extended resource-based view) to investigate a model for identifying whether local protectionism at the subnational level is beneficial or detrimental for foreign subsidiary operations or functions as a double-edged sword. We also examine whether or not internal organizational capabilities and relational capital with government moderate the effects. On the basis of regression analyses, our empirical findings reveal that the positive or negative effects of subnational protectionism in China depend on performance types. Moreover, performance contribution is considerably moderated by various internal capabilities of MNC subsidiaries. Findings offer valuable and practical implications for MNCs intending to invest in emerging economies. |
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subjects | Brand equity Business Business and Management Business Strategy/Leadership Competition Competitive advantage Economic aspects Emerging markets Emerging Markets/Globalization Foreign investment Foreign subsidiaries International business enterprises International finance Operations Management Organization Protectionism Regions Research Article Trade restrictions |
title | Protectionism and its Impact on MNC Subsidiaries’ Performance |
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