A Strategic Choice in the Czech Republic: Fiendishly Clever
Subsidiaries?

J 2013

A Strategic Choice in the Czech Republic: Fiendishly Clever Subsidiaries?

ŽÁKOVÁ TALPOVÁ, Sylva

Základní údaje

Originální název

A Strategic Choice in the Czech Republic: Fiendishly Clever Subsidiaries?

Název česky

Strategická volba v České republice: Jsou manažeři poboček chytřejší?

Autoři

ŽÁKOVÁ TALPOVÁ, Sylva (203 Česká republika, garant, domácí)

Vydání

Trendy ekonomiky a managementu, AKADEMICKÉ NAKLADATELSTVÍ CERM, s. r. o. 2013, 1802-8527

Další údaje

Jazyk

angličtina

Typ výsledku

Článek v odborném periodiku

Obor

50600 5.6 Political science

Stát vydavatele

Česká republika

Utajení

není předmětem státního či obchodního tajemství

Odkazy

URL

Kód RIV

RIV/00216224:14560/13:00071564

Organizační jednotka

Ekonomicko-správní fakulta

Klíčová slova anglicky

MNE strategy centralization Miles and Snow performance

Příznaky

Mezinárodní význam, Recenzováno

Změněno: 30. 1. 2014 15:35, Ing. Bc. Sylva Žáková Talpová, Ph.D.

Anotace

V originále

Purpose of the article This contribution focuses on the parent-subsidiary relationship from the perspective of centralization in the strategy-making process. Methodology/methods First, the development and contemporary state of theory relating to parent-subsidiary relationship are analyzed and research questions are formulated. Second, the empirical data from 155 MNE subsidiaries are used to reveal which strategies are pursued by these subsidiaries, taking into consideration the level of centralization of the strategy-making process. Finally, the performance implications of strategies deployed by the companies are examined. Scientific aim The role of the MNE subsidiary may vary between creation of the strategy and adoption of a strategy created by the parent company. The main objective of this study is to reveal differences among strategies chosen by subsidiaries with different levels of centralization of the strategy-making process, and to evaluate performance implications. Findings Findings show that subsidiaries that are allowed to determine their strategy choose innovative and prospective strategies. Such strategies proved to be related to higher subsidiary performance, followed by the defender strategy. Conclusions The results imply that the MNE subsidiary could be more efficient than headquarters in adjusting to the local environment and might benefit from familiarity with the local environment. Therefore, this study confirms that a subsidiary can be a powerful determinant in the strategy-making process. This study has important implications for managers at MNC headquarters and at their subsidiaries. Since the emerging market of the Czech Republic is considered attractive for foreign direct investment, the findings of this study may have implications for executives already active in this market, but they are primarily for those intending to enter this market.

Citovat

ŽÁKOVÁ TALPOVÁ, Sylva. A Strategic Choice in the Czech Republic: Fiendishly Clever Subsidiaries? Trendy ekonomiky a managementu. AKADEMICKÉ NAKLADATELSTVÍ CERM, s. r. o., 2013, VII, č. 16, s. 109-117. ISSN 1802-8527.

@article{1161806,
   author = {Žáková Talpová, Sylva},
   article_number = {16},
   keywords = {MNE strategy centralization Miles and Snow performance},
   language = {eng},
   issn = {1802-8527},
   journal = {Trendy ekonomiky a managementu},
   title = {A Strategic Choice in the Czech Republic: Fiendishly Clever Subsidiaries?},
   url = {http://www.fbm.vutbr.cz/files/trendy-16.pdf},
   volume = {VII},
   year = {2013}
}

TY  - JOUR
ID  - 1161806
AU  - Žáková Talpová, Sylva
PY  - 2013
TI  - A Strategic Choice in the Czech Republic: Fiendishly Clever Subsidiaries?
JF  - Trendy ekonomiky a managementu
VL  - VII
IS  - 16
SP  - 109-117
EP  - 109-117
PB  - AKADEMICKÉ NAKLADATELSTVÍ CERM, s. r. o.
SN  - 18028527
KW  - MNE strategy centralization Miles and Snow performance
UR  - http://www.fbm.vutbr.cz/files/trendy-16.pdf
N2  - Purpose of the article This contribution focuses on the parent-subsidiary relationship from the perspective of centralization in the strategy-making process. Methodology/methods First, the development and contemporary state of theory relating to parent-subsidiary relationship are analyzed and research questions are formulated. Second, the empirical data from 155 MNE subsidiaries are used to reveal which strategies are pursued by these subsidiaries, taking into consideration the level of centralization of the strategy-making process. Finally, the performance implications of strategies deployed by the companies are examined. Scientific aim The role of the MNE subsidiary may vary between creation of the strategy and adoption of a strategy created by the parent company. The main objective of this study is to reveal differences among strategies chosen by subsidiaries with different levels of centralization of the strategy-making process, and to evaluate performance implications. Findings Findings show that subsidiaries that are allowed to determine their strategy choose innovative and prospective strategies. Such strategies proved to be related to higher subsidiary performance, followed by the defender strategy. Conclusions The results imply that the MNE subsidiary could be more efficient than headquarters in adjusting to the local environment and might benefit from familiarity with the local environment. Therefore, this study confirms that a subsidiary can be a powerful determinant in the strategy-making process. This study has important implications for managers at MNC headquarters and at their subsidiaries. Since the emerging market of the Czech Republic is considered attractive for foreign direct investment, the findings of this study may have implications for executives already active in this market, but they are primarily for those intending to enter this market.
ER  -

ŽÁKOVÁ TALPOVÁ, Sylva. A Strategic Choice in the Czech Republic: Fiendishly Clever Subsidiaries? \textit{Trendy ekonomiky a managementu}. AKADEMICKÉ NAKLADATELSTVÍ CERM, s. r. o., 2013, VII, č.~16, s.~109-117. ISSN~1802-8527.

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