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Similarity to successful peers and the implications for subsidiary performance

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Abstract

This study explores whether the performance of a lower-performing subsidiary improves when it is staffed in a similar manner to high-performing subsidiaries. Using a panel data set comprising 11 266 observations of foreign subsidiaries of Japanese firms, it is found that in subsidiaries with strategic importance, staff deployment similar to that of high-performing peers has a positive impact on the subsidiary’s performance. This study also demonstrates that when institutional distance between the host and home countries is large, staff deployment similar to that of high-performing peers has a negative impact on performance.

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Acknowledgements

The author would like to thank Guest Editor, Tomoki Sekiguchi, and two anonymous reviewers for their insightful comments and suggestions. He also would like to thank Associate Editor, John Billingsley. This research was supported by Grant-in-Aid for Scientific Research (24530487) provided by the Japan Society for the Promotion of Science.

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  1. Hosei University, 2-17-1 Fujimi, Tokyo, 102-8160, Chiyoda, Japan

    Naoki Ando

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Ando, N. Similarity to successful peers and the implications for subsidiary performance. Asian Bus Manage 15, 110–136 (2016). https://doi.org/10.1057/abm.2015.18

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