The Determinants of Foreign Subsidiaries Status－A Case Study of Taiwan-based Subsidiaries in China
Date Issued
2009
Date
2009
Author(s)
Yuan, Chien-Ching
Abstract
Immersed in the influence of globalization of economy, multinational corporations have changed their management styles towards their subsidiaries. In the past, parent companies held full dominance over their subsidiaries’ developments and the role of subsidiaries were nothing better than an offshore factory. However, as the techniques and management resources of the subsidiaries take roots in their local areas, the subsidiaries have evolved their own autonomy, managing local operation on their own and devoting themselves to R&D and local services. This thesis adopts the databank of the Investment Commission, Ministry of Economic Affairs as the analysis sample, attempting to study the factors that affect the autonomy of the Taiwan-based subsidiaries in China. In addition, this thesis has analyzed seven variables under two constructs, the characteristics of the subsidiaries themselves and their local linkage. What sets this thesis distinct from other Taiwanese researches is that most of them studied subsidiaries’ autonomy from a cross sectional perspective or in the method of case study. Nevertheless, this study adopted panel data as research sample and incorporated service sector into analysis, utilizing control variables like different areas and industries to dissect if these variables would contribute to any influence on the autonomy of the subsidiaries. The result found that the characteristics of subsidiaries themselves（ 、 、 ）and the extent of subsidiaries’ local linkage（ 、 、 、 ） had positive effects on their autonomy. Moreover, the subsidiaries located in Yangtze River Delta and Pearl River Delta have the most autonomy in determining their management. If looking from the perspective of industry, only industries like food and beverages manufacturing, rubber and plastic products manufacturing, and machinery and equipment manufacturing hold prominent influence over their subsidiaries
Subjects
Subsidiaries
Autonomy
Value-added
Ordered Probit Model
Tobit Model
Type
thesis
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