Configurational characteristics of mandate portfolios and their impact on foreign subsidiary survival

Hyoungjin Lee, Chris Changwha Chung*, Paul W. Beamish

*Corresponding author for this work

Research output: Contribution to journalArticleResearchpeer-review

12 Citations (Scopus)

Abstract

This study examines how the composition of subsidiaries’ mandates affects their survival, by investigating the configurational characteristics of mandate portfolios. Examining data from 1991 to 2017 on 14,952 foreign subsidiaries of 4,877 multinational enterprises reveals that while having a mandate portfolio with greater scope in relation to same-parent subsidiaries enhances the survivability of foreign subsidiaries, the effect is weakened when the portfolio has a higher degree of overlap with those of other same-parent subsidiaries. Conversely, when a subsidiary's mandate portfolio puts a greater emphasis on the multinational enterprise's (MNE) global value-chain activities, its effect on subsidiary survival is strengthened.

Original languageEnglish
Article number100999
JournalJournal of World Business
Volume54
Issue number5
DOIs
Publication statusPublished - Nov 2019
Externally publishedYes

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