The effects of an MNC subsidiary's integration and local responsiveness on its performance: an empirical study of Taiwanese enterprises' subsidiaries

The continuing trend of industrial globalisation and the apparent attractiveness of foreign markets have prompted an increasing number of Taiwanese enterprises to accelerate their transition toward a fully international operation by establishing foreign subsidiaries. In analysing 53 foreign subsidiaries of Taiwanese enterprises, this study explores the effects of a subsidiary's integration and local responsiveness on its performance. The current analysis reveals that a subsidiary's integration with its parent company and its local responsiveness both have a positive influence on its performance. Furthermore, the industry's global integration has a positive moderating effect on the relationship between a subsidiary's integration and its performance. Meanwhile, the wholly owned subsidiary entry mode has a negative moderating effect on the relationship between a subsidiary's local responsiveness and its performance.