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How Does Subsidiary Autonomy Influence Performance in the Emerging Economy: Different Moderating Effects of Subsidiary Entrepreneurship

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  • Tsai Chengan

    (Department of Business Administration, Shih Chien University, 70, Ta-Chi Street, Taipei, 104, Taiwan)

Abstract

Previous research has confirmed the overall positive relationship between subsidiary autonomy and performance. However, given the lack of consensus regarding the effect of subsidiary autonomy on performance, contingency is required to understand complex linkages and possible causality in both developed and emerging economies. This study adopts the agency theory and entrepreneurship to address the interplay among subsidiary autonomy, entrepreneurship, and performance in the emerging economy of China. The empirical results indicate that renewal entrepreneurship has a positive moderating effect and venturing entrepreneurship has an inverted U-shaped moderating effect on the positive relationship between subsidiary autonomy and performance. This study extends the research context and contributes to the literature on agency theory and entrepreneurship in the multinational corporation.

Suggested Citation

  • Tsai Chengan, 2024. "How Does Subsidiary Autonomy Influence Performance in the Emerging Economy: Different Moderating Effects of Subsidiary Entrepreneurship," Entrepreneurship Research Journal, De Gruyter, vol. 14(3), pages 1373-1400.
    • Handle: RePEc:bpj:erjour:v:14:y:2024:i:3:p:1373-1400:n:1006
    DOI: 10.1515/erj-2021-0346
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