The effects of networks and autonomy on foreign-owned subsidiary competence development in Taiwan
International Journal of Emerging Markets
ISSN: 1746-8809
Article publication date: 29 November 2018
Abstract
Purpose
The purpose of this paper is to investigate the role of networks and autonomy in competence development of foreign-owned subsidiaries (FOS) located in Taiwan.
Design/methodology/approach
Survey data have been collected from FOS located in the mid-range emerging economy of Taiwan and analysed using structured equation modelling and fuzzy set qualitative comparative analysis (fsQCA) techniques.
Findings
The results show that decision-making autonomy and intra-organisational networks are important factors for primary and support competence development. However, by using fsQCA technique the authors also show that many subsidiaries differ from that main pattern. For instance, local business and non-business networks can also contribute to primary competence development, but only in high autonomy subsidiaries.
Originality/value
The originality of this paper lies in the detailed investigation of how fine grained network relationship strengths (intra-, business-, non-business local networks) affect different levels of subsidiary competencies (primary and support activities). The authors also provide novelty in applying a combination of symmetric (structural-equation modelling – partial least squared) and non-symmetric (fsQCA) analytical techniques.
Keywords
Citation
Dahms, S. (2018), "The effects of networks and autonomy on foreign-owned subsidiary competence development in Taiwan", International Journal of Emerging Markets, Vol. 13 No. 6, pp. 1615-1634. https://doi.org/10.1108/IJoEM-06-2017-0201
Publisher
:Emerald Publishing Limited
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