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Article
Publication date: 6 October 2023

Junying Liu, Ying Wang and Xueyao Du

Foreign construction subsidiaries play an important role in the global construction market. How to establish and maintain long-term sustainable performance has attracted increased…

Abstract

Purpose

Foreign construction subsidiaries play an important role in the global construction market. How to establish and maintain long-term sustainable performance has attracted increased attention, but only a few studies have considered this issue. The purpose of this study is to explore the relationship between autonomy and the sustainable performance of subsidiaries and to provide support for their management control modes.

Design/methodology/approach

From an institutional logics perspective, empirical research using a questionnaire survey was conducted following the methodological framework of this study. Relevant data were collected from 106 experienced managers of foreign construction subsidiaries, and the hypotheses were tested through a regression model.

Findings

The results show that foreign construction subsidiaries have a high degree of operational autonomy, which tends to strengthen their embeddedness in the host country and improve their sustainable performance. However, the role of strategic autonomy is not found to be significant. The moderation results show that the positive impact between operational autonomy and external network embeddedness is strengthened by institutional distance. Institutional distance has no significant moderating impact on the relationship between strategic autonomy and external network embeddedness, respectively.

Research limitations/implications

Geographical limitations may exist as the survey is focused on the Chinese construction foreign subsidiaries. However, based on an institutional logics perspective, this study discusses the management control mode of foreign subsidiaries, which enriches the antecedents of sustainable performance and can provide an in-depth explanation of the effects of the organizational strategies of multinational construction enterprises.

Practical implications

This study provides beneficial information for the sustainable performance of foreign construction subsidiaries. It will provide detailed guidance to managers located in different institutional environments on optimally promoting the sustainable development of subsidiaries.

Originality/value

This study identifies autonomy as an important antecedent, making it one of the first studies investigating autonomy on the sustainable performance of foreign construction subsidiaries. The findings of this study can contribute to the construction subsidiaries' sustainable performance literature and provide novel, comprehensive knowledge for academia and practice.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 25 January 2024

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

Abstract

Purpose

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

Design/methodology/approach

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Findings

This paper identifies that there are benefits that subsidiaries can reap when they are granted greater autonomy in decision making.

Originality/value

The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Details

Strategic Direction, vol. 40 no. 2
Type: Research Article
ISSN: 0258-0543

Keywords

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