SUBSIDIARY GROUPING AND PERFORMANCE: THE ROLE OF UPPER-ECHELON SIZE AND FIRM AGE UNDER UNCERTAINTY.

New research on MNC subsidiaries has begun to examine subsidiary grouping - i.e., the colocation of multiple subsidiaries in the same nation. While published studies have shown that subsidiary grouping fosters the performance of the local grouped-subsidiary, this study draws from the upper echelon and liability of newness perspectives to reveal the inner mechanisms by which such a phenomenon occurs. It suggests that the effects of subsidiary grouping are magnified in those subsidiaries that have smaller upper-echelon managerial architectures and younger ages. Moreover, this study examines the inner functioning of these two mechanisms, explaining why their effect changes under uncertainty. [ABSTRACT FROM AUTHOR]