Journal of Northeastern University Natural Science ›› 2017, Vol. 38 ›› Issue (10): 1511-1515.DOI: 10.12068/j.issn.1005-3026.2017.10.029

• Management Science • Previous Articles     Next Articles

Influence of MNC Legitimacy on Control Strategy of Subsidiaries After M & A

GENG Yuan-xin, DU Xiao-jun   

  1. School of Business Administration, Northeastern University, Shenyang 110169, China.
  • Received:2016-12-22 Revised:2016-12-22 Online:2017-10-15 Published:2017-10-13
  • Contact: GENG Yuan-xin
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Abstract: Under dual pressure of institution and competition, the relation between MNC legitimacy and MNC subsidiaries control was studied on the basis of the institution and organizational ecologies. The questionnaire sample data of equipment manufacturing industry and high-tech service industry showed that the relations between MNC legitimacy and subsidiary ownership ratio, expatriate staffing ratio were influenced by competition. With the increase of legitimacy, MNC tends to increase the ownership ratio and expatriate staffing ratio for the less fierce competition subsidiaries (smaller subsidiaries), while MNC tends to reduce the ownership ratio and expatriate staffing ratio for the fierce competition subsidiaries (large subsidiaries).

Key words: MNC, legitimacy, competition, subsidiary control, intervention regulation variables

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