The Influence of Technological Innovation and Degree of Headquarter Control on Subsidiary’s Performance: A Study on Taiwan MNCs in Vietnam

• Main Authors: Chih-Tsung Hsiao, 蕭志聰
• Other Authors: Ku-H0 Lin
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/h24v4t

碩士 === 國立中興大學 === 高階經理人碩士在職專班 === 100 === In an increasingly competitive and globalized business environment, firms have to consider internationalization as one of their growth satrategies. In the process of internationalization of the firm, the overseas subsidiary control approaches and related management issues have become a subject of concern of the entrepreneur. This study investigates the effects of the degree of control of the parent company on overseas subsidiaries, resource commitment by parent companies , the active behavior of subsidiraries and local environmental factors on the subsidiary technological innovation capability and business performance. Taiwan manufacturers that invested in Vietnam were selected as target firms. questionnaire survey was adopted in Hochiming City and near area. The results of this study found that the Taiwan firms tend to invest in Vietnam because of a relatively low operating costs and preferential tax conditions, which can help firms to maintain higher degree of competitiveness.In addition, to the initial investment the parent company to provide the necessary resources, subsidiaries through a local network the establishment of the gradual strengthening of the local level, the development of complementary resources, in order to compensate for the lack of resources. Thesubsidiary would produce truly innovative acts to enhance its own value, and increase competitiveness, and thus enhance the overall business performance. The parent company should be given the full autonomy of the subsidiary, and the expansion of subsidiary participation in decision-making authorities, and encourage managers to improve the innovative behavior, because of the innovative concept of individual and team in order to become a product, process innovation sources, thereby enhancing overall business performance.