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Copyright of Journal of Management & Business Research (2521-4306) is the property of Chinese Management Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Scotland was a premier destination for American direct investment from the 1940s to the 1970s. Multinationals were attracted by regional policy inducements that sought to develop modernised engineering sectors. This paper examines the evolution of four American-owned manufacturing subsidiaries between the 1940s and 1980s using correspondence between plant managers and policymakers. Reconciling existing Scottish subsidiary literature, success and failure are both documented. Subsidiary entrepreneurial behaviour was displayed in each case, but developmental outcomes were inhibited. Centralised American management exercised power over Scottish plants, including stripping subsidiaries of innovative products that were developed in Scotland. However, corporate product market competitiveness, a subsidiary's existing strength within a multinational's global region presence and business governance structures coalesced to condition success and failure. Policymakers must attempt to embed competitive advantages within localised linkages, but their ability to do so is strongly conditioned by the domestic industrial structure's capacity to respond favourably to these challenges. [ABSTRACT FROM AUTHOR]

In this article we discuss how an investment firm established outside the EU may provide services (to clients) in the EU. We explore how such third country firms may enter the European market and discuss the current state of the third country regimes as provided (partly) under EU law, their use—or notable lack thereof—and the challenges involved in the supervision of third country firms. We note that the recent updates to the third country equivalence regime for the provision of services to professional clients render the use of this regime even more difficult. In respect of the (optional) third country regime for the provision of services to retail clients, we observe that this regime is much akin to a full license requirement, albeit with notable difficulties when it comes to supervision and enforcement. Altogether, we come to the unfortunate conclusion that the EU third country regime for investment firms established in third countries can barely be called successful. [ABSTRACT FROM AUTHOR]

We study subsidiary capital structure as a mechanism of intra-MNE (multinational enterprise) governance from the perspective of "new internalization theory". We build on the argument from transaction cost theory that equity and debt are not just financial instruments but also alternative governance structures, with equity useful for financing specific assets that do not serve well as collateral, especially when external uncertainty is high. Inside an MNE, debt represents a partial reintroduction of market mechanisms that can limit governance costs and strengthen subsidiary manager incentives. However, debt financing may be inappropriate if subsidiaries possess specific assets that are lost if debt contracts are enforced. Using subsidiary-level panel data from Norwegian MNEs, we argue that patents registered in the subsidiary represent MNE-specific non-location bound knowledge assets, while subsidiary R&D income represents location-bound and subsidiary-specific assets. We predict MNE-specific assets to be negatively related to external debt, and subsidiary-specific assets to be negatively related to all debt, under conditions of external uncertainty. We find only partial support for our hypotheses. Patents are negatively related to external debt when external uncertainty in the form of political risk is high. However, we do not find similar significant results for location-bound and subsidiary-specific assets, measured by subsidiary R&D income. For both measures, there is evidence that debt financing is viable in low-risk contexts. Further analysis indicates different effects for joint ventures as compared to wholly owned subsidiaries. We build on the partly unexpected results to propose an expanded internalization perspective on subsidiary capital structure. [ABSTRACT FROM AUTHOR]

Copyright of Research Papers of the Wroclaw University of Economics / Prace Naukowe Uniwersytetu Ekonomicznego we Wroclawiu is the property of Uniwersytet Ekonomiczny we Wroclawiu and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Purpose: The purpose of the study is to identify the level of decision-making autonomy of subsidiaries of multinational automotive companies located in Poland and to determine whether this level will increase or decrease? Around the main objective formulated in this way, the following specific objectives were established: (1) to recognize the current level of decisionmaking autonomy of subsidiaries; (2) to determine the direction of change (increase/decrease) in the level of decision-making autonomy of subsidiaries. Design/methodology/approach: The survey method and the method of content analysis of source materials were used. The electronic questionnaire was answered by the directors of subsidiaries, who make up the so-called local management. The survey was conducted in the second quarter of 2023 on a sample of 32 subsidiaries. Findings: Subsidiaries show an average level of decision-making autonomy in functional areas (1.85 on a 3-degree scale). Subsidiaries have the highest level of autonomy in the technical and personnel areas and the lowest in the marketing and sales sphere. This indicates the manufacturing nature of the subsidiaries with a strongly developed personnel function. Research limitations/implications: The research was limited to thirty-two automotive subsidiaries. The results presented should serve as a starting point for research on a larger research sample. Practical implications: The results and conclusions presented in the article can be used by headquarters managers, including those in other sectors, when designing the level of autonomy of subsidiaries. Changes in the level of autonomy of subsidiaries should take into account the opinion of subsidiary managers, and therefore not just one but two sides. Originality/value: Demonstrate the existing level of decision-making autonomy of subsidiaries with particular emphasis on functional areas, strategic decisions made, decisions made in key areas of the division. To indicate the directions of changes in autonomy taking into account the Covid 19 pandemic and the contemporary challenges facing organizations. [ABSTRACT FROM AUTHOR]

This study explores the strategic drivers of digital transformation (DT) at subsidiaries. Our research framework derives strategic drivers from a tripod model that integrates the resource-based, the institution-based, and the industry-based views. We use two longitudinal case studies at global automotive suppliers' Hungarian subsidiaries. We found that each view highlights a different set of strategic drivers. DT in the subsidiaries is boosted by proactive local management and mature process improvement routines (dynamic capabilities); parent–pull relation (internal institutions) and state support attracting manufacturing FDI (external institutions); as well as buyers' increasing expectations and supplier-related factors (industry-based view). By combining these views, we claim that drivers related to the external institutional context and the industrial competition are usually filtered by the global management before contributing to resource adjustments at subsidiaries in a coercive top-down manner. Despite this seemingly deterministic DT process, local managements can actively shape DT, even that of the MNE. [ABSTRACT FROM AUTHOR]

AbstractManagement Control Systems (MCS) have become increasingly important for the management of subsidiaries by the parent company. In addition, MCS are influenced by the cultural and organizational axes of both parties (parent company vs. subsidiaries).Therefore, an appropriate balance between these axes is required since there are differences between the country of origin and the host country of the investment. Thus, this study explores the MCS of a subsidiary and the parent company’s influences on it through a case study supported by multiple semi-structured interviews. The results obtained show that the parent company exerts a strong influence on the MCS of the subsidiary. This assertiveness is revealed in the subsidiary’s weak operational and non-operational autonomy as a reflection of the parent company’s organisational culture (country of origin of the investment). The main contribution of this study lies in the country of origin of the parent company (Asia) and in the study of an extractive industry whose end product (tungsten) is a strategic resource for the world. Another contribution is theoretical and related to the new institutional sociology. This theory recognizes the normative and cultural issues of organizations as essential and sees management accounting practices and management control systems as the result of internal and external pressures, as well as the growing importance given to the norms, beliefs, and values of stakeholders within the organization and the organizational environment itself. The use of the Flamholtz model applied to the mining sector also fills a gap identified in the literature.

Drawing on the business network theory and the resource-based view, we investigate the moderating role of R&D intensity on the relationship between subsidiaries' external embeddedness in a host country and the probability of subsidiary product innovation. Using data from 402 subsidiaries located in Vietnam, the Probit regression results revealed that the higher the subsidiary's embeddedness with local sales and local input suppliers in a transition economy, the higher the probability that it will achieve product innovation. R&D intensity positively moderates such associations. Our finding extends the argument of the business network theory by stressing the need of MNEs to use their foreign subsidiaries in transition economies to gain local knowledge and other resources from local sales agents and local input suppliers; they can do so by embedding themselves into the environment and simultaneously using these sources and internal resources to strengthen their product innovation possibilities. [ABSTRACT FROM AUTHOR]

Using the sample of 335 subsidiaries in a CEE country, this article investigates the relationship between the number and type of regional headquarters (RHQs) in a MNE organizational structure and the subsidiary decision-making autonomy. The results show that almost half of the MNEs have more than one RHQ in their structure. Still, the more RHQs in the structure do not mean a higher level of centralization. Instead, the inverted U-shape seems to reflect the relationship. Moreover, within different structures, companies are choosing different areas to centralize. The results provide a better understanding of the subsidiary autonomy and offer a different view on the structure autonomy relationship. [ABSTRACT FROM AUTHOR]

In most legal systems, direct derivative claim has been accepted. The shareholder can thus sue on behalf of company against director, executive manager, inspector and even third parties that damaged the company. In Iranian law, the action is just possible in joint stock company and against director and executive manager. In multiple derivative claim, parent company’s shareholder can bring an action against the same persons in subsidiary or sub-subsidiary. Contrary to standard derivative claim, there is not consensus about multiple derivative claim in legal systems even among scholars. This advice was criticised on reasons such as separation of legal entity from its shareholders, separation of shareholder’s property from company’s property, the exceptional nature of derivative claim. Conversely, it has been accepted on the standing of parent company’s shareholder to file a lawsuit, meeting the interest, the necessity of external supervision on managing the corporate. It has been apparently aknowleged in English law and the shareholder is able to bring such an action. This mechanism has not been accepted in Iranian law, while it can play a role in inducing individuals to invest in companies and securing deterrence, so it deserve to foresee it in Iranian law.

Copyright of Management international / International Management / Gestiòn Internacional is the property of Management International and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

In this dynamic world, the trends change rapidly, and it becomes more challenging for the organizations to compete in market space. The study focuses on essential aspects of strategy. Based the current trends, it has even become more demanding for the firms to survive in this competitive age without appropriate planned strategy. The research paper observed that only those firms can be result oriented which have flexibility in their policy and develop a culture which has the enough flexibility to endure and absorb positive changes. The study is conceptual in nature and based on conceptual analysis, we found that the firms that adopt the best practices emerge as leading firms in today's age. If an organization seeks for massive production, it directly transfers the technology to the local partners and order sales of its products worldwide and earns great repute in the international market. While on other hand if the firm is looking for some innovation, it gives full authority to the local partner to best utilize the resources and produce great results. Thus, strategy matter and matters a lot. [ABSTRACT FROM AUTHOR]

Subsidiaries are important in the global strategy of multinational enterprises (MNEs). However, in the face of uncertainty and competition, the decision to divest a subsidiary from a market becomes a critical decision for MNEs. This study suggests that the factors for divesting subsidiaries are related not only to the performance of the subsidiary but also to slack resources and sunk costs. It analysed 254 subsidiaries in Taiwan and found that the better the subsidiary’s performance is, the less it would decide to divest from the market. Additionally, it was found that the subsidiary with slack resources would be a moderating variable with a positive impact. In addition, the presence of sunk costs reinforces the positive effect of slack resources on the relationship between subsidiary performance and the non-divestment of the subsidiary. Overall, this study points to the significance of subsidiary performance on decision-making and explains the influence of slack resources and sunk costs. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of the study is to identify the degree of centralization - decentralization of management in multi-entity organizations. Around the main objective thus formulated, the following specific objectives were established: (1) to recognize the degree of centralization -decentralization of management in multi-entity organizations in light of the literature on the subject (2) to identify the changes directly implemented in the subsidiaries of German concerns during the Covid-19 pandemic, (3) to recognize the directions of changes in the distribution of functions in the subsidiaries of German concerns. Design/methodology/approach: The method used was content analysis of source materials and the interview method. The director of the production plant (subsidiary) was interviewed systematically (once a year). Interviews were conducted from 2019 to 2022. Findings: The research shows that during the Covid-19 pandemic period, the scope of functions and decision-making powers were increased for subsidiaries. This is because the idea was to equip them with the necessary competencies to make many important decisions on the spot from time to time. Research limitations/implications: The research was limited to four subsidiaries belonging to different automotive concerns. The results presented should serve as a starting point for research on a larger research sample. Practical implications: Coronavirus influenced the acceleration of decentralization processes in concerns. The results of the study showed the changes that the companies implemented in terms of functions and decisions in order to cope with the new challenges (threats) coming from the environment. The results presented in the article can be used by other multi-entiti organizations to redesign the structures of their subsidiaries into more flexible and more resilient to hard-to-predict phenomena arising in the organization's environment. As a result, increasing their decision-making independence. Originality/value: Demonstrate the trend toward decentralization of management, detailing the functions covered by the changes. The material can be used by practitioners to redesign existing arrangements for functions (tasks) and decision-making powers in subsidiaries. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Management & Business Research (2521-4306) is the property of Chinese Management Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Corporate social responsibility (CSR) of MNE subsidiaries in emerging markets has mainly been studied through aggregated CSR activities. Instead, this study disaggregates CSR engagement towards target groups into two foci - External and Internal CSR - depending on whether such engagement is outside or within the organization. We explored whether the odds of a wholly owned subsidiary matching its parent's choice of target groups - for both External and Internal CSR - varied by which organizational cohort it belonged to, based on organizational characteristics. Results of logistic regressions indicate that age of a subsidiary, relative size of the subsidiary and region-of-origin of its parent influence the odds of the subsidiary following its parent's External CSR focus; while age of a subsidiary, global presence of its parent, and industry type influence the odds of the subsidiary following its parent's Internal CSR focus. Findings indicate that both through External and Internal CSR, MNE subsidiaries simultaneously pursue legitimacy and competitive advantage, through different primary stakeholder groups, to address both host country and global institutional contexts. [ABSTRACT FROM AUTHOR]

1) Background: The establishment and functioning of multinational companies is the most important element of the world economy at present, and the article presents the main characteristics of these companies, which through the subsidiaries they make contribute both to the economic and social development of the areas in which they are located, establishing relationships that influence the future of the various countries around the globe. 2) Methods: Thus, the article highlights the factors that led to the formation of multinational companies, both as a historical evolution and in terms of the interests of the actors involved in their organization and implementation. The article also presents the typology and role of affiliated companies, their involvement in the productive process and the role they play in the economies of host countries as well as the resources that can be used for their constitution as origin and impact concerning the national interests of the countries where subsidiaries are located. The paper addresses the impact of multinational firms 'operations on the resident economies of the mother companies and, secondly, the importance of economic, social and environmental developments in the subsidiaries' countries, emphasizing in particular the negative issues which have started to prevail in recent years. 3) Results: In this regard, the most popular manifestations of international tax evasion are reviewed: transfer prices, opacity of bank operations, transfer of benefits between subsidiaries and the existence of tax havens revealed by journalistic investigations, which hold the poster head in the news worldwide. Tax losses in national budgets caused by international tax evasion practiced by multinational companies represent the most serious damage to the life of the population of the host country, as it significantly reduces public revenues for education and training, economic development and technical and scientific progress, the development and modernization of infrastructure, preservation and protection of the natural environment.4) Conclusion: In order for multinational companies respect the rights of the populations and countries, various projects regarding international regulations have been formulated, but the compliance with these regulations can only be achieved through the creation of international judiciary courts with decision-making and enforcement power.

The aim of this article is to understand the two ways of setting up share companies (SAs) and partnerships limited by shares (SCAs) – through full and simultaneous subscription and through public subscription –, the analysis of the SAs and SCAs set up through public subscription, knowing the role of the constituent assembly and the role of the founders in the set up phase of SAs and SCAs, as well as the conditions for the set up of branches and subsidiaries.

We examined the relations between environmental, social, and governance (ESG) activities and the performance of subsidiaries of multinational corporations (MNCs). We further investigated the moderating effect of market-oriented organizational culture on the relationship between ESG and performance. Employing generalized least square regression analysis using survey data, we show that ESG activities of MNC subsidiaries are positively associated with financial and non-financial performance. These results suggest that ESG improves the financial and non-financial performance of subsidiaries. The test for the moderating effect of the market-oriented organizational culture shows that it weakens the positive relationship between ESG activities and financial performance. This could be due to the incongruous nature of the short-term focus of a market-oriented organizational culture versus the long-term orientation of the sustainability of ESG activities. [ABSTRACT FROM AUTHOR]

Copyright of Business Consultant / Poslovni Konsultant is the property of FINconsult Ltd. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

• Executive accountability leads to a reduction in subsidiary-level investments. • The effect of accountability is mainly reflected in cross-industry subsidiaries. • The effect of accountability is more pronounced for chairmen close to retirement. • The effect of accountability is more pronounced for politically connected firms. • The accountability system drives SOEs to focus on their main business. This paper examines the effect of the accountability system for illegal operations and investments on subsidiary-level investments in Chinese state-owned enterprises (SOEs). Using the accountability system as a policy shock, we find that SOEs reduced the establishment of subsidiaries after the implementation of the accountability system, especially subsidiaries in cross-industry businesses. Furthermore, we find that this disincentive effect is more pronounced (1) when the chairman is close to retirement and (2) when the company has political affiliation. Our findings provide important implications for improving the SOE capital supervision system and promoting the high-quality development of SOEs. [ABSTRACT FROM AUTHOR]

We examined the relations between environmental, social, and governance (ESG) activities and the performance of subsidiaries of multinational corporations (MNCs). We further investigated the moderating effect of market-oriented organizational culture on the relationship between ESG and performance. Employing generalized least square regression analysis using survey data, we show that ESG activities of MNC subsidiaries are positively associated with financial and non-financial performance. These results suggest that ESG improves the financial and non-financial performance of subsidiaries. The test for the moderating effect of the market-oriented organizational culture shows that it weakens the positive relationship between ESG activities and financial performance. This could be due to the incongruous nature of the short-term focus of a market-oriented organizational culture versus the long-term orientation of the sustainability of ESG activities.

Copyright of Jerash Journal for Research & Studies is the property of Jerash University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Business Consultant / Poslovni Konsultant is the property of FINconsult Ltd. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The purpose of this paper is to present some challenges regarding the concepts “permanent establishment” (PE) and “fixed establishment” (FE) in the context of the subsidiary and the digital economy. These issues are some of the most discussed topics in the field of international and European tax law, which determines their relevance and growing research and practical interest. [ABSTRACT FROM AUTHOR]

Purpose: This paper examines the philosophy behind multinational companies’ global knowledge flows, highlighting links between external actors’ knowledge and expatriate managers’ actions. Applying philosophical pragmatism as a theoretical background, expatriate managers’ perception of external actors’ knowledge is presented as a tool enabling successful knowledge transfer. Design/methodology/approach: Data obtained via a survey on a sample of expatriate managers in Croatia is used. Using a partial least square structural equation modeling method, the correlations between external actors’ impact and subsidiary investment and headquarter benefits are explored. Findings and implications: Expatriate managers believe that headquarters benefit from a stronger impact of external actors on subsidiaries and an increase in subsidiaries’ internal investment. Our findings direct managers towards the harmonization of their priorities, highlighting the importance of inter- and intra-organizational agreements, suggesting that financial means should be directed towards widening internal knowledge bases and exploiting the potential of external knowledge. Limitations: Expats relevance perception priorities may be disrupted when headquarters impose performance evaluation criteria. This paper is also subject to expatriate managers’ experience limitations, which decreases their likelihood of recognizing relevant knowledge. Originality/value: Focusing on the psychology of expatriate managers, this paper introduces philosophical pragmatism as a theoretical framework underpinning successful knowledge transfer actions. Originating from pragmatism, successful actions are made through a manager’s perception of relevant knowledge. Expatriate managers’ actions are thus not passive reflections of their reality, but rather the result of their perception of relevant knowledge.