The Impact of Local Networks on Subsidiary Performance: The Moderating Effects of Host Country Institutional Voids

This study investigates two core aspects of local network conditions: first, the various network embeddedness resources in network range; second, the long-term or strong connection of network strength in a host country. By examining 274 observations of the Taiwanese MNEs, we found that a host country subsidiary's local network conditions can positively affect its performance and this relationship is negatively moderated by institutional voids. According to RBV-based network view and institutional theory in global contexts, our study contributes to a more contextualized research on network resources and local condition of a host country, as it has been called more recently.