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A microeconometric analysis of the springboard subsidiary: The case of Spanish firms

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  • Caicedo Marulanda, Carolina
  • Mora Rodríguez, Jhon James
  • Barber, José Bla
  • Darder, Fidel León

Abstract

This article provides a microeconometric analysis of the distinctive characteristics of springboard subsidiaries that have a positive impact on the subsidiaries' performance. Based on panel data estimations for subsidiaries of European multinational companies with a presence in Spain, the authors found that if the subsidiary located in the springboard country is a springboard subsidiary, its performance increases by 3.6%. When the subsidiary has a technological relationship with another subsidiary, its performance increases by 1.9%. If the subsidiary that has the technological relationship is a springboard subsidiary located in a springboard country, this increases performance by 1.8%. Growth of 1% in absorption capacity increases a subsidiary's performance by 1.2%. Finally, low autonomy reduces the performance of a subsidiary by 34.4% compared to independent subsidiaries or those with a high degree of autonomy.

Suggested Citation

  • Caicedo Marulanda, Carolina & Mora Rodríguez, Jhon James & Barber, José Bla & Darder, Fidel León, 2015. "A microeconometric analysis of the springboard subsidiary: The case of Spanish firms," Economics Discussion Papers 2015-23, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwedp:201523
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    References listed on IDEAS

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    More about this item

    Keywords

    Microeconometric Analysis; Springboard Country; Springboard Subsidiary; Subsidiary - Specific Advantage; Firms Performance; Panel Data;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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