What determines MNC subsidiary performance? Evidence from China

Xiaowen Tian*, John W. Slocum

*Corresponding author for this work

Research output: Contribution to journalArticleResearchpeer-review

27 Citations (Scopus)


The paper challenges the view that MNC dictates a subsidiary's business strategy and operations in accordance with the integration-responsiveness (IR) framework. The paper integrates the IR framework with contingency theory to argue that a subsidiary needs discretion to craft its own effective business strategy in light of the environmental exigencies facing the subsidiary in the host country. It may do so at variance with the MNC's strategy. Evidence from China supports that subsidiary managers should take strategic initiatives in response to specific host country environment.

Original languageEnglish
Pages (from-to)421-430
Number of pages10
JournalJournal of World Business
Issue number3
Publication statusPublished - 2014


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