Unraveling the Impact of Dual Network Embeddedness on Subsidiary Performance in China: The Mediating Role of Organizational Learning and Innovation Capability
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초록
In the context of the deepening global economic integration, the overseas subsidiaries of multinational enterprises are no longer just subordinate roles attached to the parent company but rather main contributors to performance, utilizing resources and relationships within the network of multinational enterprises. Thus, the research questions that arise are: how does dual embeddedness impact subsidiary performance and how do innovating capability and organizational learning mediate the relationship between dual embeddedness and subsidiary performance. To address these research questions, empirical data are collected online from 389 top managers in multinational subsidiaries in China. Multivariate regression analysis indicates that internal and external embeddedness are significantly positively related to innovation capability, organizational learning and subsidiary performance. Subsidiary innovation capability mediates the relationship between dual embeddedness and subsidiary performance. Organizational learning also mediates the relationship between dual embeddedness and subsidiary performance.
Abstract
In the context of the deepening global economic integration, the overseas subsidiaries of multinational enterprises are no longer just subordinate roles attached to the parent company but rather main contributors to performance, utilizing resources and relationships within the network of multinational enterprises. Thus, the research questions that arise are: how does dual embeddedness impact subsidiary performance and how do innovating capability and organizational learning mediate the relationship between dual embeddedness and subsidiary performance. To address these research questions, empirical data are collected online from 389 top managers in multinational subsidiaries in China. Multivariate regression analysis indicates that internal and external embeddedness are significantly positively related to innovation capability, organizational learning and subsidiary performance. Subsidiary innovation capability mediates the relationship between dual embeddedness and subsidiary performance. Organizational learning also mediates the relationship between dual embeddedness and subsidiary performance.
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