• Embeddedness and Entrepreneurship: An Empirical Study on Taiwan Subsidiaries

Abstract

Research on corporate entrepreneurship (CE) has grown rapidly over the past decades. Although this kind of research has come out with valuable theoretical concepts and rich empirical results, scholars suggested that CE research should be extended to international setting or include the network perspective. This study extended entrepreneurship into international activities and conducted an empirical study on multinational enterprise’s subsidiaries with relational embeddedness of network perspective. Through the literature review and case study, we generated a set of hypothesis which described the relationships between relational embeddedness and subsidiary entrepreneurship. We collected 230 data and used statistical tool to verify the hypothesis. The findings are： (1) there exists the inversed U shape relationship between parent-subsidiary relational embeddedness and subsidiary entrepreneurship, (2)there exists the inversed U shape relationship between customer relational embeddedness and subsidiary entrepreneurship, (3)there exists the inversed U shape relationship between supplier relational embeddedness and subsidiary entrepreneurship, (4)there exists positive relationship between government relational embeddedness and subsidiary entrepreneurship. This study suggests that insufficient or over embeddedness with parent company, customer or supplier will negatively influence the subsidiary entrepreneurship.

Keyword: Corporate Entrepreneurship, Subsidiary entrepreneurship, Relational embeddedness