Explaining autonomy variations across value‐chain activities in foreign‐owned subsidiaries

Abstract

This article is one of the first to combine the asset bundling model and neo-configurational perspective to explain autonomy variations across different value-chain activities in foreign-owned subsidiaries. We develop tentative answers to three research questions based on survey data of subsidiaries located in Taiwan and Thailand. We use fuzzy set qualitative comparative analysis technique to analyze the data. We found that competence bundles in primary and support activities are key for autonomy development across basic and advanced value-adding activities. Strong relationships with local business networks are more important for autonomy development than links to universities or governmental institutions. The global city location plays a lesser role than expected and the geographic distance is a hindrance to autonomy development in basic as well as advanced value-chain activities.