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Institutional and resource-based explanations for subsidiary performance

Hughes, M.; Powell, T.H.; Chung, L.; Mellahi, K.

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Authors

M. Hughes

T.H. Powell

L. Chung

K. Mellahi



Abstract

Addressing calls to integrate insights from institutional theory and the resource-based view, we bring together dual theoretical explanations from institutional theory and the resource-based view to examine the effectiveness of transfer of practice and human capital development as two routes to subsidiary performance. Our study of Hong Kong firms with subsidiaries in Mainland China shows that both routes positively affect subsidiary performance. However, our data show that our sampled firms struggled to successfully transfer practices from their parents. We attribute an explanation for this to the characteristics of practices as organizational capabilities in which transfer is made harder by the difficulty in replicating such capabilities. Consequently, developing subsidiary human capital is an important ally to practice transfer as a means to achieve superior subsidiary performance. Our results raise interesting questions about practice transfer and the resource-based view relevant to future scholarly research.

Citation

Hughes, M., Powell, T., Chung, L., & Mellahi, K. (2016). Institutional and resource-based explanations for subsidiary performance. British Journal of Management, 28(3), 407-424. https://doi.org/10.1111/1467-8551.12169

Journal Article Type Article
Acceptance Date Mar 4, 2016
Online Publication Date May 27, 2016
Publication Date May 27, 2016
Deposit Date Mar 10, 2016
Publicly Available Date Mar 29, 2024
Journal British Journal of Management
Print ISSN 1045-3172
Electronic ISSN 1467-8551
Publisher Wiley
Peer Reviewed Peer Reviewed
Volume 28
Issue 3
Pages 407-424
DOI https://doi.org/10.1111/1467-8551.12169
Public URL https://durham-repository.worktribe.com/output/1417479

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Copyright Statement
This is the accepted version of the following article: Hughes, M., Powell, T. H., Chung, L. and Mellahi, K. (2016), Institutional and Resource-based Explanations for Subsidiary Performance. British Journal of Management, which has been published in final form at https://doi.org/10.1111/1467-8551.12169. This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.




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