Strategic roles of foreign multinational subsidiaries in 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.