D. Manolopoulos, Aristides Bitzenis, Ekrem Tatoğlu
{"title":"The Impact of Governance Quality on Subsidiaries’ Performance: A Survey Analysis from Turkey","authors":"D. Manolopoulos, Aristides Bitzenis, Ekrem Tatoğlu","doi":"10.1080/10669868.2019.1708838","DOIUrl":null,"url":null,"abstract":"Abstract We employ the quality of governance to study the impact of local institutional context on foreign subsidiaries’ performance. We propose and empirically document that local institutional quality has growth-enhancing effects on subsidiary growth. More specifically, we show that political stability, government effectiveness, regulatory quality, and rule of low are positively and significantly related to subsidiaries’ output. Our findings suggest that, apart from resources and market considerations, institutional constructs should be included as influential predictors in the general models investigating subsidiary performance.","PeriodicalId":44266,"journal":{"name":"Journal of East-West Business","volume":null,"pages":null},"PeriodicalIF":1.2000,"publicationDate":"2020-01-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10669868.2019.1708838","citationCount":"2","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of East-West Business","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1080/10669868.2019.1708838","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q4","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 2
Abstract
Abstract We employ the quality of governance to study the impact of local institutional context on foreign subsidiaries’ performance. We propose and empirically document that local institutional quality has growth-enhancing effects on subsidiary growth. More specifically, we show that political stability, government effectiveness, regulatory quality, and rule of low are positively and significantly related to subsidiaries’ output. Our findings suggest that, apart from resources and market considerations, institutional constructs should be included as influential predictors in the general models investigating subsidiary performance.
期刊介绍:
Journal of East-West Business is a quarterly journal that deals with contemporary and emerging aspects of business studies, strategies, development, and practice as they relate to the Russian Federation, the new republics of the Commonwealth of Independent States, and Eastern/Central Europe-and business relationships with other countries of the world. The Journal of East-West Business is international in scope and treats business issues from comparative, cross-cultural, and cross-national perspectives. The journal features an Editorial Advisory Board that represents the Russian Federation, Eastern/Central European, and Baltic states in this new business arena.