Integration-responsiveness, local hires and subsidiary performance amidst turbulence: Insights from a survey of Chinese subsidiaries

We study MNE subsidiary performance in a turbulent, emerging economy, focusing on how locally hired managers and integration − responsiveness (I-R) influence performance outcomes. We augment I-R by considering how locally hired managers support or hinder global integration (GI) and local responsiveness (LR) in China. Analysis of data from 104 Chinese subsidiaries suggests higher proportions of locally hired managers do not support GI; GI is sufficient in its own right in dealing with turbulence, positively moderating the relationship between turbulence and performance. However, a higher proportion of locally hired managers does improve subsidiary performance amidst turbulence when accompanied by LR.