Title: Strategic roles of foreign multinational subsidiaries in Malaysia

Authors: Zaidah Mustaffa, Md. Zabid Abdul Rashid, Murali Sambasivan

Addresses: Faculty of Economics and Management, Universiti Putra Malaysia, 43400 Serdang, Selangor, Malaysia Department of International Business, University of Auckland Business School, Auckland, New Zealand. ' Centre for Graduate Studies, Open University Malaysia, Jalan Tun Ismail 50480 Kuala Lumpur, Malaysia. ' Faculty of Economics and Management, Universiti Putra Malaysia, 43400 Serdang, Selangor, Malaysia

Abstract: The paper investigates the strategic roles of foreign Multinational Corporations (MNCs) subsidiaries in Malaysia. Specifically, the study aims to explore the differences of the strategic roles in terms of local responsiveness, integration and technological capabilities of subsidiaries. The strategic roles of subsidiaries are tested with respect to the firms| and industry|s characteristics and level of performance. Seventy-one subsidiaries participated in the study. The study discovered five strategic roles of foreign MNC subsidiaries in Malaysia. The strategic roles are found to be dependent upon firm and industry characteristics. Performance is not found to be significantly different across the strategic roles. The implications of the study are discussed.

Keywords: Malaysia; strategic roles; multinational corporations; MNCs; subsidiary companies; foreign subsidiaries.

DOI: 10.1504/IJMDM.2007.012725

International Journal of Management and Decision Making, 2007 Vol.8 No.2/3/4, pp.268 - 289

Available online: 10 Mar 2007 *

Full-text access for editors Access for subscribers Purchase this article Comment on this article