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Measuring the Success of the Production Subsidiaries

In: Direct Investment in the United Kingdom by Smaller European Firms

Author

Listed:
  • Peter J. Buckley

    (University of Bradford Management Centre)

  • Zdenka Berkova

    (University of Bradford Management Centre)

  • Gerald D. Newbould

    (Cleveland State University)

Abstract

Part III studies our sample of production subsidiaries established in Britain by smaller firms based in Continental Europe. The essential fact about such foreign direct investment is that the European company purchases or creates the power to exert control over assets in an economy (the United Kingdom) other than that in which it is based. New problems arise: control over decision making, adaption to alien conditions and customs and new forms of costs. Direct investment involves not only the transfer of capital, but also the transfer of management (or direction) of technology and of skills. The investing firm faces these problems in the new environment with a view to improving the overall success of the overseas venture. In order to examine, in a cogent fashion, the planning, establishment and running of the production subsidiaries by the parent firms in Continental Europe, it is necessary to have a level of success ascribed to each subsidiary. This chapter sets up the measures of success that we employed, and gives the levels of success for the subsidiaries.

Suggested Citation

  • Peter J. Buckley & Zdenka Berkova & Gerald D. Newbould, 1983. "Measuring the Success of the Production Subsidiaries," Palgrave Macmillan Books, in: Direct Investment in the United Kingdom by Smaller European Firms, chapter 4, pages 35-52, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-1-349-06433-5_4
    DOI: 10.1007/978-1-349-06433-5_4
    as

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