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, No 16, p. 109-117. ISSN 1802-8527.
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Basic information
Original name A Strategic Choice in the Czech Republic: Fiendishly Clever Subsidiaries?
Name in Czech Strategická volba v České republice: Jsou manažeři poboček chytřejší?
Authors ŽÁKOVÁ TALPOVÁ, Sylva (203 Czech Republic, guarantor, belonging to the institution).
Edition Trendy ekonomiky a managementu, AKADEMICKÉ NAKLADATELSTVÍ CERM, s. r. o. 2013, 1802-8527.
Other information
Original language English
Type of outcome Article in a journal
Field of Study 50600 5.6 Political science
Country of publisher Czech Republic
Confidentiality degree is not subject to a state or trade secret
WWW URL
RIV identification code RIV/00216224:14560/13:00071564
Organization unit Faculty of Economics and Administration
Keywords in English MNE strategy centralization Miles and Snow performance
Tags International impact, Reviewed
Changed by Changed by: Ing. Bc. Sylva Žáková Talpová, Ph.D., učo 99992. Changed: 30/1/2014 15:35.
Abstract
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.
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