Capability, environment and internationalization fit, and financial and marketing performance of MNE's foreign subsidiaries: An abdicative contingency approach

D. Dikova, S.C. Parker, Arjen van Witteloostuijn

Research output: Contribution to journalArticleScientificpeer-review

Abstract

Purpose
Extant work in international business (IB) involves a partial contingency-theoretic perspective: a holistic view of the impact of bundles of contingencies on an outcome variable is missing. The purpose of this paper is to adopt a contingency approach to study multinational enterprise (MNE) subsidiary performance in the appropriate context of European transition economies at the beginning of the current millennium.

Design/methodology/approach
Methodologically, the authors introduce abduction as a line of inquiry into IB and management to develop new theoretical insights, and apply the novel empirical general interaction method to estimate bundle effects. In so doing, the authors contribute to the further development of a theoretical and empirical toolkit to revitalize holistic, or configurational, quantitative research in IB and management.

Findings
The authors find that capability fit is a necessary condition for high MNE subsidiary marketing performance, whilst environment fit is particularly critical for high MNE subsidiary financial performance.

Research limitations/implications
A key limitation is that this is a cross-section study.

Practical implications
This study offers insights as to subsidiary fit into Eastern Europe, indicating fitting entry and establishment modes.

Originality/value
This paper offers a novel holistic approach to IB, both in terms of theoretical and empirical methodology.
Original languageEnglish
Pages (from-to)405-435
JournalCross-Cultural and Strategic Management
Volume24
Issue number3
DOIs
Publication statusPublished - 2017

Fingerprint

internationalization
contingency
marketing
performance
abduction
holistic approach
methodology
quantitative research
management
Eastern Europe
economy
Financial performance
Foreign subsidiaries
Marketing performance
Internationalization
International business
Multinational enterprises
Contingency approach
interaction
Subsidiaries

Keywords

  • subsidiary performance
  • entry modes
  • establishment modes
  • fit-outcome relationships

Cite this

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title = "Capability, environment and internationalization fit, and financial and marketing performance of MNE's foreign subsidiaries: An abdicative contingency approach",
abstract = "PurposeExtant work in international business (IB) involves a partial contingency-theoretic perspective: a holistic view of the impact of bundles of contingencies on an outcome variable is missing. The purpose of this paper is to adopt a contingency approach to study multinational enterprise (MNE) subsidiary performance in the appropriate context of European transition economies at the beginning of the current millennium.Design/methodology/approachMethodologically, the authors introduce abduction as a line of inquiry into IB and management to develop new theoretical insights, and apply the novel empirical general interaction method to estimate bundle effects. In so doing, the authors contribute to the further development of a theoretical and empirical toolkit to revitalize holistic, or configurational, quantitative research in IB and management.FindingsThe authors find that capability fit is a necessary condition for high MNE subsidiary marketing performance, whilst environment fit is particularly critical for high MNE subsidiary financial performance.Research limitations/implicationsA key limitation is that this is a cross-section study.Practical implicationsThis study offers insights as to subsidiary fit into Eastern Europe, indicating fitting entry and establishment modes.Originality/valueThis paper offers a novel holistic approach to IB, both in terms of theoretical and empirical methodology.",
keywords = "subsidiary performance, entry modes, establishment modes , fit-outcome relationships",
author = "D. Dikova and S.C. Parker and {van Witteloostuijn}, Arjen",
year = "2017",
doi = "10.1108/CCSM-01-2016-0003",
language = "English",
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pages = "405--435",
journal = "Cross-Cultural and Strategic Management",
issn = "2059-5794",
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}

Capability, environment and internationalization fit, and financial and marketing performance of MNE's foreign subsidiaries : An abdicative contingency approach. / Dikova, D.; Parker, S.C.; van Witteloostuijn, Arjen.

In: Cross-Cultural and Strategic Management, Vol. 24, No. 3, 2017, p. 405-435.

Research output: Contribution to journalArticleScientificpeer-review

TY - JOUR

T1 - Capability, environment and internationalization fit, and financial and marketing performance of MNE's foreign subsidiaries

T2 - An abdicative contingency approach

AU - Dikova, D.

AU - Parker, S.C.

AU - van Witteloostuijn, Arjen

PY - 2017

Y1 - 2017

N2 - PurposeExtant work in international business (IB) involves a partial contingency-theoretic perspective: a holistic view of the impact of bundles of contingencies on an outcome variable is missing. The purpose of this paper is to adopt a contingency approach to study multinational enterprise (MNE) subsidiary performance in the appropriate context of European transition economies at the beginning of the current millennium.Design/methodology/approachMethodologically, the authors introduce abduction as a line of inquiry into IB and management to develop new theoretical insights, and apply the novel empirical general interaction method to estimate bundle effects. In so doing, the authors contribute to the further development of a theoretical and empirical toolkit to revitalize holistic, or configurational, quantitative research in IB and management.FindingsThe authors find that capability fit is a necessary condition for high MNE subsidiary marketing performance, whilst environment fit is particularly critical for high MNE subsidiary financial performance.Research limitations/implicationsA key limitation is that this is a cross-section study.Practical implicationsThis study offers insights as to subsidiary fit into Eastern Europe, indicating fitting entry and establishment modes.Originality/valueThis paper offers a novel holistic approach to IB, both in terms of theoretical and empirical methodology.

AB - PurposeExtant work in international business (IB) involves a partial contingency-theoretic perspective: a holistic view of the impact of bundles of contingencies on an outcome variable is missing. The purpose of this paper is to adopt a contingency approach to study multinational enterprise (MNE) subsidiary performance in the appropriate context of European transition economies at the beginning of the current millennium.Design/methodology/approachMethodologically, the authors introduce abduction as a line of inquiry into IB and management to develop new theoretical insights, and apply the novel empirical general interaction method to estimate bundle effects. In so doing, the authors contribute to the further development of a theoretical and empirical toolkit to revitalize holistic, or configurational, quantitative research in IB and management.FindingsThe authors find that capability fit is a necessary condition for high MNE subsidiary marketing performance, whilst environment fit is particularly critical for high MNE subsidiary financial performance.Research limitations/implicationsA key limitation is that this is a cross-section study.Practical implicationsThis study offers insights as to subsidiary fit into Eastern Europe, indicating fitting entry and establishment modes.Originality/valueThis paper offers a novel holistic approach to IB, both in terms of theoretical and empirical methodology.

KW - subsidiary performance

KW - entry modes

KW - establishment modes

KW - fit-outcome relationships

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DO - 10.1108/CCSM-01-2016-0003

M3 - Article

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JO - Cross-Cultural and Strategic Management

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