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International strategy implementation: Roles of subsidiaries, operational capabilities, and procedural justice

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  • Lin, Shao-Lung
  • Hsieh, An-Tien

Abstract

This study develops a framework to propose how the differentiation of operational capabilities (coordination and configuration) and procedural justice fits to different subsidiary roles, and the relationship between the fit and the subsidiary performance. The findings are based on a survey of sixty-two foreign subsidiaries in Taiwan. The results indicate that (1) the operational capabilities and procedural justice of the top-performing subsidiaries can be differentiated according to their distinct strategic roles, and the differentiation exhibits an ideal profile for each role as shown in Fig. 2; (2) the extent to which a subsidiary fits the ideal profile associated with its role is positively related to the subsidiary's performance. The authors discuss the theoretical and managerial implications and provide some suggestions for the future study.

Suggested Citation

  • Lin, Shao-Lung & Hsieh, An-Tien, 2010. "International strategy implementation: Roles of subsidiaries, operational capabilities, and procedural justice," Journal of Business Research, Elsevier, vol. 63(1), pages 52-59, January.
    • Handle: RePEc:eee:jbrese:v:63:y:2010:i:1:p:52-59
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    9. Głodowska Agnieszka & Pera Bożena & Wach Krzysztof, 2019. "International Strategy as the Facilitator of the Speed, Scope, and Scale of Firms’ Internationalization," Journal of Management and Business Administration. Central Europe, Sciendo, vol. 27(3), pages 55-84, September.
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