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The Dance Of Longevity: Rhythms Of Maturity In Mnes Subsidiary Management, Mehdi Rasouli Ghahroudi, Sundar Balakrishnan

Association of Marketing Theory and Practice Proceedings 2024

We investigate the factors influencing the sustainability of subsidiaries and their effective management in host countries over the long term. We explore the impact of subsidiary mandates on longstanding subsidiaries in comparison to younger counterparts, validating our hypotheses through the analysis of data from 1,463 Japanese subsidiaries operating in 26 developing and developed countries. Our findings reveal that efficiency and strategic asset-seeking subsidiaries are more likely to maintain longer operations in the host market. Additionally, we contribute to the literature by applying the resource-based view and institutional theory to promote the longevity of subsidiaries. Our results underscore the necessity of …