Hughes, Mathew, Powell, Taman H., Chung, Leanne and Mellahi, Kamel (2017) Institutional and resource-based explanations for subsidiary performance. British Journal of Management, 28 (3). pp. 407-424. doi:10.1111/1467-8551.12169 ISSN 1045-3172.

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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.

Item Type:	Journal Article
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions:	Faculty of Social Sciences > Warwick Business School
Library of Congress Subject Headings (LCSH):	Subsidiary corporations -- China, Foreign subsidiaries -- Hong Kong, Personnel management, Human capital
Journal or Publication Title:	British Journal of Management
Publisher:	Wiley-Blackwell Publishing Ltd.
ISSN:	1045-3172
Official Date:	July 2017
Dates:	Date Event July 2017 Published 29 February 2016 Accepted 27 May 2016 Available 23 February 2015 Submitted
Volume:	28
Number:	3
Number of Pages:	43
Page Range:	pp. 407-424
DOI:	10.1111/1467-8551.12169
Status:	Peer Reviewed
Publication Status:	Published
Access rights to Published version:	Restricted or Subscription Access
Date of first compliant deposit:	16 March 2016
Date of first compliant Open Access:	27 May 2018

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