When is it time to shine? The search for subsidiary initiative configurations that drive performance

What the paper says

Purpose This study aims to examine the influence of subsidiary initiatives on the performance of foreign-owned subsidiaries. Using the asset bundling model as a theoretical framework, the research identifies specific asset configurations that contribute to both high and low performance outcomes. Design/methodology/approach The study uses an empirical approach, collecting data from managing directors of subsidiaries located in Taiwan and Thailand. Fuzzy set qualitative comparative analysis technique is used for analysis. Findings The findings reveal that relying solely on subsidiary initiatives is insufficient for driving performance. Instead, the study identifies multiple asset configurations where networks, competencies and location complement and substitute each other in conjunction with initiatives to influence performance. Moreover, the research uncovers evidence of causal asymmetry, indicating that the presence or absence of specific conditions does not automatically guarantee high-performance outcomes. Originality/value This study contributes to the existing literature by developing and testing a subsidiary initiative framework grounded in the asset bundling model and the neo-configurational perspective. The identification of intricate relationships between subsidiary initiatives, networks, competencies and location provides a nuanced understanding of the factors influencing performance outcomes in foreign-owned subsidiaries. This framework offers valuable insights for practitioners and scholars exploring subsidiary performance in multinational enterprises.