The performance of foreign subsidiaries (FS) has been the topic of studies since the beginning of the international business (IB) field. However, research findings are contradictory because of the disparate… Click to show full abstract
The performance of foreign subsidiaries (FS) has been the topic of studies since the beginning of the international business (IB) field. However, research findings are contradictory because of the disparate foci of individual studies. In this review paper, we first identify key determinants of the performance of FS through a structured content analysis of 73 articles and 679 relationships since the year 2000. Second, we explain the effects of each determinant, and perform meta-analysis to determine which relationships are statistically meaningful. Third, we compare the effects of determinants across different combinations of home and host contexts, based on which, we provide possible explanations of previous inconsistent findings. We conclude by offering new theoretical directions to better understand determinants of the performance of FS.
               
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