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Market Orientation, Embeddedness and the Autonomy and Performance of Multinational Subsidiaries in an Emerging Economy

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  • Xiaoying Li

    (Brunel University)

  • Xiaming Liu

    (Birkbeck College)

  • Howard Thomas

    (Singapore Management University)

Abstract

This paper develops a conceptual framework for market orientation, embeddedness, autonomy and performance of multinational subsidiaries in an emerging economy. We argue that internal and external embeddedness has different performance implications for export- and local market-oriented multinational subsidiaries. Our results, based on a sample of 233 multinational subsidiaries from China, indicate that while external embeddedness has a positive impact on specialized resources of both types of subsidiary, such resources only positively affect the performance of local market-oriented subsidiaries. By contrast, internal embeddedness has a negative impact on specialized resources of both types of subsidiary. Managerial and policy implications are discussed.

Suggested Citation

  • Xiaoying Li & Xiaming Liu & Howard Thomas, 2013. "Market Orientation, Embeddedness and the Autonomy and Performance of Multinational Subsidiaries in an Emerging Economy," Management International Review, Springer, vol. 53(6), pages 869-897, December.
    • Handle: RePEc:spr:manint:v:53:y:2013:i:6:d:10.1007_s11575-013-0177-0
    DOI: 10.1007/s11575-013-0177-0
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