Influences of Institutional distance on the resource and capability endowment of Foreign-owned subsidiaries

Abstract

The focus of this study is to investigate the influences of institutional distance on the capability endowment of foreign owned Regional Headquarters in the Northwest of England. Especially of interest are the relations of ‘economic rationality’ (efficiency) of foreign owned subsidiaries and ‘relational rationality’ (institutions). Inter- and intraorganisational relationships shall be considered as well as contextual factors. A conceptual framework shall be empirically tested using large-scale survey method. Especially of interest are differences between manufacturing and service sectors.