The impact of “distance” on multinational enterprise subsidiary capabilities
研究了母公司特定优势、文化距离和地理距离如何影响跨国企业子公司的能力,并发现这些因素对上游和下游价值链活动的影响存在差异,基于对加拿大60家外国子公司的实证分析。
Purpose The aim of this paper is to investigate how multinational enterprise (MNE) subsidiary capabilities are influenced by the firm-specific advantages (FSAs) of the parent company, as well as by cultural and geographic distance between the home and host country. Design/methodology/approach This paper assesses how the effects of the parent FSAs, cultural distance and geographic distance on subsidiary capabilities vary for different value-chain activities, with an empirical application to 60 foreign subsidiaries operating in Canada. Findings This paper uncovers distinct, three-way interaction effects among parent-level FSAs, cultural distance and geographic distance for upstream versus downstream activities in the value chain. Originality/value We find that in special cases, high levels of distance can be positive for MNEs, in terms of driving the creation of stronger subsidiary capabilities.