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Title: Institutional and resource-based explanations for subsidiary performance
Authors: Hughes, Mathew
Powell, Taman H.
Chung, Leanne
Mellahi, Kamel
Keywords: Transfer of practice
Human capital
Institutional theory
Resource-based view
Issue Date: 2016
Publisher: © British Academy of Management. Published by John Wiley & Sons.
Citation: HUGHES, M. ... et al, 2016. Institutional and resource-based explanations for subsidiary performance. British Journal of Management, 28 (3), pp. 407–424.
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.
Description: This paper is closed access until 27th May 2018.
Version: Accepted for publication
DOI: 10.1111/1467-8551.12169
URI: https://dspace.lboro.ac.uk/2134/24333
Publisher Link: http://dx.doi.org/10.1111/1467-8551.12169
ISSN: 1045-3172
Appears in Collections:Closed Access (Business School)

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