Antecedents of network strength in foreign-owned subsidiaries: locational, expatriate, and industrial conditions

Abstract

Although the effects of networks on numerous outcome variables such as performance or innovation have been investigated multiple times in the foreign-owned subsidiary literature, relatively little is known about the antecedents of network relationships. This research addresses this gap in applying configuration theory and network perspectives in order to explain network relationship strength in foreign-owned subsidiaries located in the mid-range emerging economy of Taiwan. The data collected from a large-scale survey is analysed using fuzzy set qualitative comparative analysis method. The results show that there are a number of different solutions that can lead to increased network strength. These solutions, consisting of industrial, locational, and expatriate conditions also vary with the kind of networks. We hence find strong support for equifinality in MNE networks, local non-business networks and local business networks strength development.