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Autonomy And Performance Of Foreign Subsidiaries In Transition Countries

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  • Urmas Varblane
  • Katrin Männik
  • Helena Hannula

Abstract

The paper analyses the link between the autonomy according to business function and the performance of foreign subsidiaries in Slovenia, Poland, Hungary, Slovakia and Estonia. The obtained results supported the argument that the relationship between autonomy and performance depends on the type of autonomy. Marketing and finance are the most powerful dimensions of autonomy. Higher autonomy in marketing is negatively linked with technology upgrading, measured by the productivity level, the improvement of technological level of production equipment, and the quality of products. The higher the financial autonomy of the subsidiaries the bigger the positive changes in all fields of performance.

Suggested Citation

  • Urmas Varblane & Katrin Männik & Helena Hannula, 2005. "Autonomy And Performance Of Foreign Subsidiaries In Transition Countries," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 38, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    • Handle: RePEc:mtk:febawb:38
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    Cited by:

    1. Ari Kokko & Victoria Kravtsova, 2008. "Innovative capability in MNC subsidiaries: evidence from four European transition economies," Post-Communist Economies, Taylor & Francis Journals, vol. 20(1), pages 57-75.

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