Title: The contribution of strategic assets to MNE subsidiary performance in turbulent times

Authors: Antonios Georgopoulos; Eleftherios Angelopoulos; Elen Paraskevi Paraschi; Maria Kalogera

Addresses: Department of Business Administration, University of Patras, University Campus, 26504 Rio Patras, Greece ' Department of Business Administration, University of Patras, University Campus, 26504 Rio Patras, Greece ' Department of Business Administration, University of Patras, University Campus, 26504 Rio Patras, Greece ' Department of Business Administration, University of Patras, University Campus, 26504 Rio Patras, Greece

Abstract: The study aims to investigate whether strategic assets provide a performance superiority to MNE subsidiaries in difficult times. Adopting the 'contingency- strategic asset - performance' framework, with data from a unique sample of 223 foreign MNE subsidiaries located in Greece, we examine perceived performance over the recession period 2009-2016. As hypothesised, we find that the strategic asset seeking (SAS) subsidiaries achieve a performance superiority economic during recession. We also find that they can augment their performance when operating in high-tech industries. The present study sheds light on the subsidiary performance outcome of strategic assets taking systematically into account adverse macroeconomic conditions and industry-specific factors of the host country, showing that investing in valuable assets pays off financially in turbulent times.

Keywords: MNE subsidiary performance; strategic asset seeking subsidiaries; recession; high-tech industries.

DOI: 10.1504/GBER.2024.142006

Global Business and Economics Review, 2024 Vol.31 No.4, pp.485 - 504

Received: 28 Sep 2022
Accepted: 10 May 2023
Published online: 07 Oct 2024 *

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